7 Reasons Why Electric Jukebox Has a Very Good Chance of Succeeding

Back

7 Reasons Why Electric Jukebox Has a Very Good Chance of Succeeding

The content of this podcast (or content associated with it) is not intended as investment advice and people featured may hold positions in the companies they talk about. Please do you own research.

yolo

Share Price: 1.5p
Market Cap: 6.6m
Shares in Issue: 447m

5 weeks ago I wrote a blog post on YOLO entitled, “3 Reasons I Bought Shares In YOLO

simple-tvplayer-boom-gfin

When I wrote this blog Yolo had 3 investments:

1. audioBoom (BBOM)

2. Gfinity

3. Simplestream / TVPlayer

On Monday they added another investment to their portfolio, Magic Works, the creators of Electric Jukebox

I spoke to the Simon Robinson the CEO of YOLO this week, click here to hear it.

electric-jukebox-remote-and-tv

They have invested approximately £1.4m in Magic Works, the developer of Electric Jukbox. The remainder of the funds raised will be used to provide the company with additional funds for working capital and investments.

They did this by raising £2.5 million (before expenses) through an oversubscribed placing of 250,000,000 shares at 1p per share.

What is Electric Jukebox?

Sheryl Crow explains it above but basically it’s the UK’s only user-interactive, ad free, non-subscription music streaming service.

Magic Works has entered into licensing agreements with the world’s major record labels, including Universal Music Group, Sony Music Group and Warner Music Group and major independents including Merlin Music and also the major music publishers, allowing users to access millions of albums and over 29 million music tracks ad-free.

 

7 Reasons Why Electric Jukebox Has a Very Good Chance of Succeeding

1. The Market

Magic Works have done their home work and realise there’s a massive slice of the market who love music but have not adopted, subscription lead music streaming.

ej-listening-stats

Independent market research carried out by YouGov on behalf of Magic Works suggests that over 90% of UK internet users have yet to adopt the paid-for on-demand music streaming format, even though most analysts expect it to be a primary means of music consumption going forward.

After ten years, only 60 million consumers worldwide have taken up paid-for streaming, there is a huge segment of mass market consumers globally left entirely unaddressed

800 MILLION used to buy 6 or more CDs every year.

200 MILLION used to buy 1 CD every month.

 

2. The Management

Not only do the board have a successful track record but they’re well connected too.

rob-lewis

Rob Lewis

The creator and CEO of Magic Works, was previously founder of music service provider Omnifone, and Ernst & Young Entrepreneur of The Year.

In 1994, Lewis co-founded internet software company Cromwell Media with Phil Sant and Mark Knight, providing scalable enterprise level technology solutions that power insurance sites including MORE TH>N.

While developing Cromwell Media in the years that followed, a chance meeting at a London party with a team of scientists from CERN in 1998 convinced Lewis of the power of IT publishing over the internet.

Lewis founded Silicon Media Group with Sant and Knight the same year, launching IT news site Silicon.com in the UK, and sister sites Silicon.fr in Paris and Munich-based Silicon.de.

In November 1999, Lewis reportedly raised over £11m in investment for Silicon.com from a consortium of venture capital firms headed by Amadeus Capital Partners, with reports valuing the company at £800m in May 2000.

By the time he was 30, The Guardian reported Lewis as one of the top six most successful young entrepreneurs in the UK. That same month, May 2000, aided by the ex-CEO of the Hoskyns Group (now Capgemini) Jim Feeney, Lewis sold Cromwell Media to InterX for £850m. Lewis went on to sell Silicon Media Group to NASDAQ-listed CNET Networks (part of CBS) in 2002.

Magic Works Advisory Board: 

Alain Levy (previously CEO, EMI)
alain-levy-01

 

Mark Gretton (previously founder CTO, Tom Tom)
mark-gretton

 

Paul McGuinness (previously manager, U2)
paul-mcguiness

 

David Munns (previously CEO, EMI North America)
david-munns

 

3. Commercial Partners
ej-uk-partners

Electric JukeBox went on sale this week with some of the biggest name on the High street and online including Amazon, Selfridges, Argos, Mediamarkt and FNAC. They intend to focus on the UK first, roll the it out across Europe, then the rest of the world.

 

4. The Product
ej-product-02

It wouldn’t look out of place in an Apple store with its aesthetically clean and simple finish, which fits with it’s functionality.

It’s meant to be fool proof to use, aimed at a demographic that aren’t comfortable with modern computer technology or streaming music from their smartphones via apps to their Sonos sound systems.

It’s plug in to the back of the TV and play.

It costs £169.

This may seem expensive and will probably not fall into the, “impulse buy” category more the, “considered buy” but when you consider music streaming services cost around $10 per month then it’s not far off.

After the first year, it costs £1 per week to access the music library, which is half the price of Spotify.

ej-price-comparisons

 

5. Content
record-labels

When you buy an Electric Jukebox’s you have ad free access to a huge and wide varied music library.

Magic Works have signed deals with Magic Works has entered into licensing agreements with the world’s major record labels, including Universal Music Group, Sony Music Group and Warner Music Group and major independents including Merlin Music and also the major music publishers, allowing users to access millions of albums and over 29 million music tracks ad-free

 

6. Celebrity Endorsements
ej-celebrities

Electric Jukebox is collaborating with a celebrities to curate a series of exclusive mixtapes which help users discover and enjoy more music on Electric Jukebox including:

Robbie Williams

Stephen Fry

Alesha Dixon

This is potentially excellent PR from celebrities that are pretty well known, across a wide range of demographics.

 

7. Other Products
ej-other-products

Electric Cicrcus have other products already in their pipeline, which I’ve seen and personally believe are even more impressive than their initial product.

in-summary

They have excellent management, a good product targetted at a gap in the market, which will be marketed to, by well known celebrities and ditributed via major retailers.

The content of this podcast (or content associated with it) is not intended as investment advice and people featured may hold positions in the companies they talk about. Please do you own research.

 

my-previous-blog-posts
To subscribe to my blog click here

Asiamet-logo2
To read my blog post on Asiamet Resources #ARS click here

 

audioBoom 001
To read my blog post on #audioBoom #BOOM click here.

 

MelodyVR
To read my blog post on EVR Holdings #EVRH click here.

 

PVR
To read my blog post on Providence Resources #PVR click here.

 

TLOU ENERGY
To read my blog post on #TLOU Energy click here.

 

UPLAND RESOURCES
To read my blog post on Upland Resources #UPL click here.

 

yolo
To read my blog post on Yolo Leisure and Technology #YOLO click here.

 

Vox App Image
How to get company RNS releases sent straight to the front screen of your smartphone, as soon as they release them, for free!

1. Download the Vox Markets app by clicking here (for either iPhone or Android).
2. Search for a company you want to receive the RNS’s from.
3. Click, “Follow” on that company’s page.

VOX BANNER LOGO 001

If you find this podcast useful please could you give it a 5 star rating and review on iTunes by clicking here and I’ll return the favour by giving you a mention on the podcast!

LIVE PRICES ARE NOW AVAILABLE ON VOX MARKETS

It cost £9.99 per month, £4.10 goes to the London Stock Exchange, £5.89 goes to charity. Vox Markets receive NO money from this. Click here for more information

If you find this podcast useful please could you give it a 5 star rating and review on iTunes by clicking here and I’ll return the favour by giving you a mention on the podcast!

The content of this podcast (or content associated with it) is not intended as investment advice and people featured may hold positions in the companies they talk about. Please do you own research.