Royalties and content creation costs amounted to £1.3m, while administrative expenses of £9.4m pushed MelodyVR to a £10.5m operating loss and £10.7m net loss for the first half.
The company’s filing outlined its plans for Napster. “We intend to develop a new application which will enable us to drive revenues by providing users with a premium, recurring, monthly subscription service,” it explained.
“For a monthly fee, music fans will receive access to Napster’s recorded music library of 80m+ tracks, together with new live audio recordings, long and short form video content and MelodyVR’s library of immersive VR experiences.”
MelodyVR is also planning to continue its efforts in livestreams, including selling merch and vinyl alongside them.
However, it warned that completion of the Napster transaction “is dependent upon securing additional funds associated to secure the working capital requirements going forward”.