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LiveOne (Nasdaq: LVO) Subsidiary Drumify Launches Subscription Marketplace Integrating Cyanite.ai Tech Stack

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Drumify, a subsidiary of LiveOne (NASDAQ: LVO), has launched its subscription model, Drumify 3.0, aiming to convert ~70% of its customer base into recurring subscribers. The platform offers tiered subscriptions to democratize access to professional music production tools and educate creatives on copyright ownership and wealth building.
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The launch of Drumify 3.0 represents a strategic pivot towards a subscription-based model, which is a significant move in the music production software industry. This shift aims to secure a stable revenue stream by converting existing customers into subscribers. The expected conversion rate of approximately 70% is an ambitious target that suggests confidence in the platform's value proposition.

From a market research perspective, the introduction of tiered subscriptions could potentially expand the customer base by making the platform more accessible to emerging artists. However, the success of this initiative will largely depend on the platform's ability to offer competitive features and a user experience that can rival industry leaders like Splice. The use of Cyanite AI to personalize search results could be a differentiating factor, but its effectiveness in enhancing user engagement and satisfaction will need to be monitored over time.

The announcement by LiveOne regarding Drumify's new subscription model is a move that could potentially impact the company's Average Revenue Per User (ARPU). The ARPU is a critical metric for subscription-based businesses as it reflects the revenue-generating efficiency from the customer base. By converting a large portion of Drumify's user base to subscribers, LiveOne could see a substantial increase in recurring revenue, which is generally favored by investors for its predictability.

However, investors should watch for the actual conversion rate post-launch, as the projected 70% may not materialize. Additionally, the costs associated with the platform's development and AI integration, as well as the marketing expenses to educate creators on copyright ownership and wealth-building, should be weighed against the expected increase in ARPU to assess the overall financial impact.

Drumify's focus on educating creatives about copyright ownership and wealth-building is noteworthy in the context of the music industry. This educational component could foster a more informed and financially savvy community of creators, which has long-term implications for the industry's power dynamics. By empowering artists with knowledge and tools for ownership, Drumify may be positioning itself as a more artist-centric platform, which could resonate with the creative community and drive adoption.

The collaboration with high-profile artists and record producers previously could serve as a strong endorsement for the platform. However, maintaining a high-quality catalog of sounds and ensuring that the IP offered aligns with creators' needs will be essential for the platform's sustained success and impact on the broader music production landscape.

- Drumify has produced multiple Grammy-winning and multi-platinum records for many artists, including Drake, NBA YoungBoy, $UICIDEBOY$, Lecrae and Anuel AA

- Marketplace expected to result in conversion of ~70% of current producers working with Drumify into LiveOne subscribers, increasing LiveOne ARPU

- Marketplace provides creators with a wider catalog of IP and opportunities for ownership

- Cyanite AI algorithms tailor search results based on habitual behavior for each creator, matching them with relevant beats and sounds

LOS ANGELES, CA, April 02, 2024 (GLOBE NEWSWIRE) -- via NewMediaWire -- Drumify, a subsidiary of LiveOne (NASDAQ: LVO), announced today that it launched its subscription model, Drumify 3.0. The subscription model is designed to convert ~70% of Drumify’s customer base into recurring subscribers, increasing customer lifetime value and overall revenue. By offering a range of tiered subscriptions, Drumify aims to lower the barrier of entry into professional music production, democratizing access to high-quality sounds and tools previously reserved for established industry professionals.

“We have been working around the clock on our subscription platform for over a year to not just compete with Splice, but help educate creatives on copyright ownership and building long-term wealth. We’re so excited to finally put it out into the world, and the response so far has been overwhelming,” said Aidan Crotinger, Founder of Drumify.

About LiveOne, Inc.

Headquartered in Los Angeles, CA, LiveOne (Nasdaq: LVO) is an award-winning, creator-first, music, entertainment, and technology platform focused on delivering premium experiences and content worldwide through memberships and live and virtual events. The Company’s subsidiaries include Slacker Radio, PodcastOne (Nasdaq: PODC), PPVOne, Gramophone Media, Palm Beach Records, CPS, LiveXLive, DayOne Music Publishing, Drumify and Splitmind. LiveOne is available on iOS, Android, Roku, Apple TV, Spotify, Samsung, Amazon Fire, Android TV, and through STIRR’s OTT applications. For more information, visit liveone.com and follow us on Facebook, Instagram, TikTok, YouTube and Twitter at @liveone. For more investor information, please visit ir.liveone.com.

Forward-Looking Statements

All statements other than statements of historical facts contained in this press release are “forward-looking statements,” which may often, but not always, be identified by the use of such words as “may,” “might,” “will,” “will likely result,” “would,” “should,” “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “continue,” “target” or the negative of such terms or other similar expressions. These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements, including: LiveOne’s reliance on one key customer for a substantial percentage of its revenue; LiveOne’s ability to consummate any proposed financing, acquisition, spin-out, special dividend, merger, distribution or transaction, the timing of the consummation of any such proposed event, including the risks that a condition to the consummation of any such event would not be satisfied within the expected timeframe or at all, or that the consummation of any proposed financing, acquisition, spin-out, merger, special dividend, distribution or transaction will not occur or whether any such event will enhance shareholder value; LiveOne’s ability to continue as a going concern; LiveOne’s ability to attract, maintain and increase the number of its users and paid members; LiveOne identifying, acquiring, securing and developing content; LiveOne’s intent to repurchase shares of its and/or PodcastOne’s common stock from time to time under LiveOne’s announced stock repurchase program and the timing, price, and quantity of repurchases, if any, under the program; LiveOne’s ability to maintain compliance with certain debt covenants; LiveOne successfully implementing its growth strategy, including relating to its technology platforms and applications; management’s relationships with industry stakeholders; uncertain and unfavorable outcomes in legal proceedings; changes in economic conditions; competition; risks and uncertainties applicable to the businesses of LiveOne’s subsidiaries; and other risks, uncertainties and factors including, but not limited to, those described in LiveOne’s Annual Report on Form 10-K for the fiscal year ended March 31, 2023, filed with the U.S. Securities and Exchange Commission (the “SEC”) on June 29, 2023, Quarterly Report on Form 10-Q for the quarter year ended December 31, 2023, filed with the SEC on February 13, 2024, and in LiveOne’s other filings and submissions with the SEC. These forward-looking statements speak only as of the date hereof, and LiveOne disclaims any obligation to update these statements, except as may be required by law. LiveOne intends that all forward-looking statements be subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995.

LiveOne IR Contact:
Liviakis Financial Communications, Inc.
(415) 389-4670
john@liviakis.com

Press Contact:
For LiveOne
press@liveone.com


FAQ

What is the name of the subsidiary that launched the subscription model?

Drumify, a subsidiary of LiveOne (NASDAQ: LVO), launched the subscription model.

What is the name of the subscription model launched by Drumify?

Drumify launched Drumify 3.0 as its subscription model.

What percentage of Drumify's customer base is expected to convert into recurring subscribers?

Drumify aims to convert ~70% of its customer base into recurring subscribers.

What is the main goal of Drumify's subscription model?

The main goal of Drumify's subscription model is to democratize access to professional music production tools and educate creatives on copyright ownership and wealth building.

Who is the Founder of Drumify?

Aidan Crotinger is the Founder of Drumify.

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livexlive media, inc. (“livexlive media”) is home to premier video and audio media brands and technology assets that create a social media ecosystem for music, including the livexlive platform (“livexlive”). livexlive is one of the world’s only premium streaming services devoted to live music and music-related video content, delivering live streamed and premium, on demand original content to nearly any internet-connected screen. since its launch in 2015, livexlive has streamed performances from more than 200 of the world’s biggest artists from some of music’s most popular festivals, including rock in rio, outside lands music and arts festival, and hangout music festival. livexlive media’s businesses also include event marketing and ticketing platform wantickets, social media influencer venture livexlive influencers, streaming music service slacker radio* and video-centric social media app company snap interactive*. livexlive media is headquartered in beverly hills, calif. for more info