Yep - nice technology, but faulty monetising model.
It is ultimately either subsidised or propped up by the:
- advertisers
- subscribers/customers
- record companies
- tech partners
and failing enough of the above
- investors
They don't have anywhere near enough advertisers or subscribers.
Record companies will not subsidise - they need to get paid to supply their music - which is the core end product.
Investors (private or public) need to see a return, or all they will do is artificially prop this faulty model up.
IMO, they need to pull their heads in and revisit their sales model. They are effectively a mobile customisable radio station, but in the end, enduser takeup must pay its way.
They have nice technology, but can they package it up any differently?
I think they need to create new wholesale markets.
Maybe they need to partner with airlines, vehicle manufacturers, more retail chains (they do a bit of this already), perhaps telcos - others with large user volumes - to deliver white label solutions and open up completely new markets.
I have not read the IPO material, so perhaps my thoughts are out of line, but given their existing revenue, they need to demonstrate promising innovation driven sales $$ before they go cap in hand to the public.
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