Since making their music networking and data platform free in response to the music industry’s challenges brought upon by COVID-19, Jaxsta (ASX: JXT) has had more than 10,000 users sign up for Jaxsta Pro in the past month.
As an initiative supported by leading industry labels, Jaxsta has been able to significantly increase its reach within the music industry. But by making Jaxsta Pro, the platform’s premium service (which had approximately 400 paying subscribers pre-virus), available for free until the end of 2020, the Company has foregone its primary subscription-based revenue stream.
However, the greater value may have been unlocked by newfound access to their target market of music professionals and collaborators who may wish to continue using the platform in 2021.
“We are delighted that Jaxsta has been able to support the music industry in the face of the immense pressure it is currently under,” said Jaxsta CEO and Co-Founder, Jacqui Louez Schoorl.
With the mass growth of user numbers, more than 1,000 industry professionals have claimed their official Jaxsta profile which digitises the traditional printed ‘jackets’ that lined CD covers, and included credits of individuals involved, prior to the shift towards streaming services.
Within these Jaxsta profiles, which must be verified by Jaxsta, users can link to their involvement in music that has been produced, a centralised source of digital music credits. On their official profiles, music professionals can also manage their biography, contact details and social media links whilst curating their catalogue to best promote their work.
Since launching the Jaxsta platform in June 2019 and then Jaxsta Pro in November 2019, the music tech company has seen minimal commercial income, operating at a $4.4 million loss in the 9 months up to 31 March 2020, but with a $3.5m cash balance.
Considering Jaxsta had only reported subscription sales of $30k, the decision to make Jaxsta Pro free until the end of 2020 is likely to see that subscription revenue accelerate next year as the Company sets its sights on their next objective of acquiring 50,000 users on the platform.
Jaxsta shareholders however, have shown less patience than management. JXT shares have tumbled from $0.30 at the launch of Jaxsta Pro in November 2019 to now trade around $0.03.
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