Virtual reality music startup MelodyVR has published its financial results for 2019. The company’s revenues were £195k ($242k) last year, down from £1.2m in 2018.
MelodyVR’s content sales – people paying to watch VR music performances in its catalogue – nearly doubled from £19k to £36.7k, but its revenue from content licensing dropped from just under £1.2m to £158.3k.
With a cost of sales of £1.8m and administrative expenses of £14.2m, MelodyVR reported an operating loss of £15.9m in 2019, and a net loss of just under £15m.
It ended the year with cash reserves of £6.8m, although it has since raised another £10.3m from the sale of shares (it’s a publicly-listed company) to ensure that in accountancy parlance, it’s a ‘going concern’. Whether MelodyVR’s revenues can ramp up fast enough this year to make that still true in 2021 remains to be seen.
The filing also reveals that since MelodyVR launched its smartphone app in July 2019 – before then, it was only available for VR headsets – it has generated “more than 150,000 new installs of our app”.
However, the document also talks about Covid-19 having “delayed the trajectory for launching our consumer subscription service” (which was originally planned to launch in late 2019) although plans are afoot for “our first live ticketing ‘paid for’ event” following its recent launch of a series of free-to-view concerts.