Yep - nice technology, but faulty monetising model. It is...

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.