LOS ANGELES - LiveOne (NASDAQ:LVO), a noted music streaming and entertainment platform, has announced an immediate price increase for its subscription plans. The cost for LiveOne Plus annual membership has risen by $4 to $39.99, while the monthly fee for LiveOne Premium now stands at $10.99, marking a $1 hike per subscriber.
This adjustment applies to all new subscribers to the Plus and Premium plans. LiveOne's CEO and Chairman, Robert Ellin, stated that the new pricing structure is designed to reflect the enhanced value of their music streaming services and to support continuous product innovation and the delivery of enriched content experiences.
LiveOne, which currently serves over 4 million ad-supported and paid members, is positioning itself to capitalize on the anticipated growth of the music streaming market. Projections suggest an expansion from $35 billion to over $100 billion by 2030. The price changes are part of LiveOne's strategy to maintain its competitive edge in the streaming industry while committing to offer competitive pricing and exceptional experiences to both business-to-consumer (B2C) and business-to-business (B2B) customers.
Based in Los Angeles, CA, LiveOne boasts a portfolio of subsidiaries including Slacker Radio, PodcastOne (NASDAQ:PODC), and others, delivering content across a variety of platforms such as iOS, Android, Roku (NASDAQ:ROKU), and Amazon (NASDAQ:AMZN) Fire. The company emphasizes its commitment to a creator-first approach, aiming to provide premium experiences and content worldwide.
The information for this article is based on a press release statement from LiveOne. The company has cautioned that the forward-looking statements in their announcement are subject to risks and uncertainties, and there are no guarantees that the anticipated outcomes and projections will materialize. LiveOne has disclaimed any obligation to update these statements unless required by law.
In other recent news, LiveOne, Inc. has reported significant developments. The company announced an extension of the maturity date for its promissory note tied to an asset-backed loan credit facility with East West Bank. The new maturity date is set for September 15, 2024.
LiveOne has also entered into a multi-year partnership with TextNow, aiming to enhance the digital lifestyle of TextNow users by offering them a year of LiveOne's Plus service at a reduced cost.
In the financial arena, LiveOne reported robust growth in its Audio Division for Q1 fiscal 2025, with record-breaking revenues of $31.9 million and adjusted EBITDA of $5.1 million. The company forecasts strong revenues of $130 million to $140 million and adjusted EBITDA between $20 million to $25 million for the Audio Division in the upcoming fiscal year, despite a consolidated net loss of $1.7 million.
Furthermore, LiveOne is expanding its B2B partnerships and membership base, with four major deals signed and plans to close partnerships with companies ranging from $1 billion to $1 trillion market cap by the year-end. The company has also expanded its stock buyback program to $12 million, having already purchased over 4.4 million shares.
InvestingPro Insights
LiveOne (NASDAQ:LVO), while adjusting its subscription prices, is navigating through a challenging financial landscape. The company's market capitalization currently stands at a modest $149.39 million, reflecting the scale of its operations within the competitive music streaming industry.
InvestingPro data highlights that LiveOne's revenue has grown by 18.81% over the last twelve months as of Q1 2023, indicating a positive trajectory for the company's sales. Despite this growth, the company's stock has experienced significant volatility, with a 9.2% decline over the past week. This could be indicative of market reactions to the recent pricing strategy or other external factors influencing investor confidence.
One of the critical InvestingPro Tips for LiveOne is its current financial position, where short-term obligations exceed its liquid assets. This tip suggests that the company might need to manage its working capital more efficiently or seek additional funding to meet its short-term liabilities. Additionally, LiveOne is trading at a high EBITDA valuation multiple, which could suggest that the stock is priced optimistically relative to its earnings before interest, taxes, depreciation, and amortization.
For investors considering LiveOne as a potential addition to their portfolio, it is worth noting that analysts predict the company will become profitable this year, as per another InvestingPro Tip. This forward-looking assessment could be a pivotal factor for those banking on the company's future performance amidst the competitive streaming landscape.
For readers interested in a deeper analysis, there are additional InvestingPro Tips available, offering a comprehensive view of the company's financial health and market position. To explore these insights further, visit InvestingPro for a full list of tips and real-time metrics.
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