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LiveXLive and Samsung XR tie up to redefine AR/VR music experiences

04 Dec LiveXLive and Samsung XR tie up to redefine AR/VR music experiences

LiveXLive Media (NASDAQ: LIVX), a global entertainment Company that is engaged in acquisition, distribution and monetization of digital entertainment content such as live music, Internet radio, and music-related streaming and video content, announced that it has entered into a production and distribution partnership with Samsung. The deal involves capturing 10 live events using Samsung XR app, which enables users to experience tentpole music events through use of cutting-edge technology such as holographics, volumetric video and on-site augmented reality. In addition LiveXLive will also provide customers access to long and short form VR and 360 content like pilots and artist collaboration as part of the agreement.

Robert Elin, Chairman and CEO of LiveXLive commented

“Samsung brings huge global scale as well as multi-platform content delivery options that present new opportunities. Our work with Samsung will change how people experience live streaming music.”

LiveXLive will capture 10 exclusive events using Samsung technology, which will be made available through an embedded Samsung player on LiveXLive platforms, SamsungVR.com and Samsung devices as per a Company Statement. LiveXLive has strategic multi-year partnership collaborations with reputed music content providers, with live streaming rights to more than 1500 music festivals and events covering various brands, bands and fans.

As per a Company statement, the Company has live streamed important musical festivals with more than 291 hours of live content featuring 233 artists since April 2019, including over 300 short-form original segments comprising short-form live performances pilots, lifestyle segments and podcasts.

LiveXLive Media (NASDAQ: LIVX)

Market Cap: $114.34M; Current Share Price: 1.97 USDChart
Data by YCharts

Industry
The Augmented Reality Market that was estimated to be worth USD 3.33 billion in 2015 is projected to grow at a CAGR of 85.2% from 2016 to 2021 to reach USD 133.78 billion by 2021, according to a report by Zion Market Research. The growth will primarily be driven by the gaming, entertainment and retail industries that seek innovative and unique promotional media to differentiate themselves from the competition.

Image Source: Freepik

In addition, factors such as demand for digitally enhanced reality for game development, increasing usage of smartphones, need for redefining customer engagement; manufacturing support and quality assurance are some of the areas that have contributed to AR being adapted globally. The increased demand from Aerospace and defense organizations worldwide, coupled with the blooming e-commerce sector, will further propel the growth in the AR market.

Major organizations all over the world are now adopting AR-based strategies to promote their brands and enhance customer engagement. Pokemon Go, is one of the best examples of how AR can create engaging content. Ikea now allows its customer to scan a room with the help of its IKEA PLACE app, and see how its furniture looks in the user’s surroundings. Pepsi MAX’s live for now campaign transformed a bus stop into an AR environment, by live streaming information from the road ahead, and also creating unique scenarios such as alien abduction to wild tiger chases to grab eye balls.

According to a report by Grand View Research Inc, the global Video Streaming market will reach and estimated USD 124.57 Billion by 2025, growing at a CAGR of 19.6 percent. The growth is due to the availability of high speed internet such as 3G, 4G and LTE, which is causing an increase in the demand for online and on-demand content.  The emergence of online streaming platforms such as Amazon, Netflix and Hulu is challenging the content dished out by conventional television channels. In fact a report by ResearchandMarkets predicts that the online Music Streaming industry alone will be worth over US$56.7 Billion, growing at an impressive CAGR of 33.6 percent.

Company
A global digital media Company focused exclusively on Live Entertainment, LiveXLive operates one of the leading live music streaming platforms of the world, besides operating Slacker Radio, a music streaming pioneer. In addition the Company produces original music-related content such as premium live streams, digital audio, and on-demand music content from top music festivals and concerts around the world.

Some of events covered by the Company include Rock in Rio, EDC Las Vegas, Hangout music Festival, facilitating audience access to premium events, original content, exclusive artist and industry interviews. Furthermore it offers customers’ access to millions of expert-curated stations through its internet radio service names Slacker, besides a social influencer network named LiveXLive influencers.

The Company’s announced a record revenue of $9.6 million for Q2 2020, as compared to $8.0 million in Q2 fiscal 2019. LiveXLive also reported a whopping 40 percent increase in subscriber base to 775,000 paid subscribers at the end of Q2 2020. In addition, they live streamed 10 events in Q2, 2020 as against 8 events in Q2 2019, with over 27 million views; 21 music festivals live streamed and over 60 million views year-to-date fiscal 2020, as compared to 51 million views for the entire fiscal 201 as per the Company’s Q2,2020 financial results.

Robert Ellin, CEO and Chairman of LiveXLive, stated

“LiveXLive continued to make progress during the second quarter of fiscal 2020, highlighted by 20% revenue growth, a significant improvement in contribution margin and 40% growth in paid subscribers year over year. We are revolutionizing live streaming and music-related content for fans around the world with a music platform that delivers the most unique, social, and immersive experience. LiveXLive has quickly established itself as the authentic global thought leader in live music. We have entered into long-term agreements with major events, created a unique content and global distribution platform, and we and are well positioned for significant growth in the long term.” 

Risk Assessment

  • Social Media companies need to expend cash in order to gain users other critical metrics like total views. However according to analysts LiveXLive, has not been able to raise cash at a competitive rate to fund its operating losses and has large operating losses that are leading to rapid cash burn and increasing liabilities.

 

  • LiveXLive acquired Slacker Radio for $50 million in 2017, expecting to increase its usage time beyond live streaming of events. Slacker already has a tie-up with Tesla (NASDAQ: TSLA) and was offered as a free subscription with Tesla Model S or X. In June 2018, the Company entered into an agreement with Dash Radio for Content Integration and live programming across slacker radio. This would allow Slacker customers access to performances by Snoop Dogg, Odd Future, Lil Wayne, Oscar De La Hoya, and many more artists. This would also help LiveXLive offer diverse content to appeal to a larger customer base.

 

  • AR and VR are still in their nascent stage, with there being a huge scope for improvement and innovation. There are concerns about this technology such as privacy and data security concerns design error liability, safety and intellectual property concerns, which may impede its adaptation and may hinder the Company from realizing its full potential.

 

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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Source

https://venturebeat.com/2019/12/01/solaris-offworld-combat-vr-shooter-shows-off-weapons-in-game-ar-interface/

https://www.prnewswire.com/news-releases/global-online-music-streaming-market-report-2019-2025-market-is-projected-to-grow-by-56-7-billion-300938513.html

https://seekingalpha.com/article/4309777-livexlive-media-burning-cash-fast-can-raise

https://www.theverge.com/2017/9/15/16310314/livexlive-slacker-radio-aquires-50-million

https://www.prnewswire.com/news-releases/slacker-radio-partners-with-dash-radio-to-bring-an-expanded-lineup-of-original-content-to-the-slacker-platform-300669149.html

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