Since the beginning of the pandemic, it has pivoted to broadcasting artists from empty venues and even artists' homes. In non-Covid times the company streamed massive live events like Rock In Rio, IHeart festivals, and Electronic Daisy Carnival. LiveXLive operates a concert streaming service. Additionally, it is starting to bundle subscriptions with its other services. One possibly meaningful contributor is a recent announcement that it is offering a $20/year deal through McDonald’s ( MCD) monopoly game in Canada. The company needs to find a new way to generate non-Tesla subscribers. Between the contractual dispute and Spotify being available in the cars, the Tesla partnership appears to be on shaky ground. Management expressed confidence that there would be an amenable resolution. In the most recent quarterly conference call, management revealed a contractual dispute with Tesla over a portion of revenue from June 2020 onward. Tesla is paying LiveXLive a per user fee as an amenity for customers. Meaning that the car owners aren’t paying LiveXLive. A “significant portion” of this revenue is subsidized by Tesla. This agreement has been responsible for 66% of fiscal 2021 revenue. Critically, LiveXLive has a partnership with Tesla ( TSLA) where every Tesla sold in North America comes with a subscription. LiveXLive subscriptions range from a free radio style offering to $10/month streaming with the ability to play songs on demand and download to play offline. It acquired this business when it purchased and rebranded Slacker Radio in 2017.
LiveXLive operates a commodity audio streaming division that resembles Pandora ( P), Apple Music, and Spotify ( SPOT). So far, it has only destroyed shareholder value, but the vision makes sense and investors with significant risk appetites should consider buying the shares. The company aggressively pursues acquisitions that it frequently closes. Since the IPO in 2017 the stock price has declined materially as growth has failed to materialize. LiveXLive (LIVX) is a $153M market cap media company.
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