Virtual-reality music startup MelodyVR has published its financial results for 2018, which was its first full year of availability for its app. The company reported revenues of £1.2m ($1.6m) for the full year, but also a net loss of £11.3m ($14.7m).
The company is continuing to broaden its focus beyond standalone VR headsets, in an effort to grow its audience. “While VR device adoption continues to build, we will focus on our mobile strategy to extend the reach of our music content library to the 1 billion plus smartphone devices around the world,” explained executive chairman Anthony Matchett in the financials filing. “Where others have scaled operations in anticipation of mass market appeal, our measured expansion has allowed us to conserve valuable cash resources, preserve agility and capitalise on our first mover advantage in this young and embryonic industry.”
During 2018, MelodyVR raised £20m by issuing new shares, helping it end the year with cash reserves of £19.3m. Matchett added that MelodyVR is planning “new advertising products” and “the introduction of new mobile applications” in 2019.
Its optimism around VR may be backed up by figures released by another startup, Beat Games, which makes the Beat Saber music-rhythm VR game. In nine months since its release, the $20 game has sold more than 1m copies according to TechCrunch. “Beat Saber sold over one million copies in a year and is making over $20 million in revenue,” said adviser Tipatat Chennavasin. “That makes it not just the biggest VR games success story but also the biggest indie games success story on any platform of the past year.”