LiveOne's (NASDAQ: LVO) Splitmind, an Award-Winning Music Publishing & Production Business, Co-Produces "Chill Baby" with Lil Yachty on SZA's Album Lana, Growing Revenues from Publishing Catalog

Rhea-AI Summary

LiveOne's (LVO) subsidiary Splitmind has co-produced the song 'Chill Baby' on SZA's new album Lana, featuring Lil Yachty. The song, part of the deluxe edition of SZA's 3x Platinum album SOS, was written and co-produced by Splitmind's Calvin 'CD.mp3' Dickinson. The album achieved over 27M+ streams in its first 24 hours. Splitmind's music collective has garnered over 2B streams across 100+ major label releases and increased revenues by 37% year-over-year. The company has previously live-streamed SZA to its 200M+ viewers since 2018. Splitmind's portfolio includes collaborations with notable artists like Wizkid, Drake, GloRilla, Brent Faiyaz, KYLE, Russ, and Blxst.

Positive

• Splitmind's revenue increased 37% year-over-year
• New album achieved 27M+ streams in first 24 hours
• Music collective reached 2B+ streams across 100+ major label releases
• Expanded portfolio with high-profile artist collaborations

Negative

• None.

Insights

Music Industry Analyst

<p>The collaboration between Splitmind and SZA's album represents a <b>significant revenue opportunity</b> for LiveOne's publishing division. With SZA's proven track record - her previous album SOS achieving 3x Platinum status - and the new album garnering <b>27M+ streams in just 24 hours</b>, this positions LiveOne to capture substantial publishing royalties. The <b>37% year-over-year revenue increase</b> in Splitmind's catalog demonstrates strong momentum in their publishing business.</p><p>Splitmind's growing portfolio of collaborations with major artists like Drake, Wizkid and now SZA indicates their ability to secure high-value publishing deals. The music publishing industry typically generates revenue through streaming royalties, mechanical royalties and sync licensing - with streaming platforms paying per-play royalties that accumulate significantly for popular tracks. Given SZA's streaming numbers and Splitmind's ownership stake in "Chill Baby", this could translate to meaningful recurring revenue for LiveOne.</p>

Financial Analyst

<p>For a company with a market cap of <money>$107.6M</money>, this publishing success strengthens LiveOne's revenue diversification strategy. The collaboration on SZA's album, coupled with Splitmind's <b>2B+ streams across 100+ major label releases</b>, indicates a scalable publishing business model. The <b>37% YOY revenue growth</b> in their publishing catalog is particularly noteworthy as publishing revenues typically offer higher margins and more stable long-term cash flows compared to other music industry revenue streams.</p><p>The strategic value of owning publishing rights extends beyond immediate streaming revenue - these assets appreciate over time and can generate income through various channels including sync licensing for commercials, films and TV shows. Given LiveOne's existing streaming platform reaching <b>200M+ viewers</b>, there's potential for vertical integration benefits by promoting Splitmind-produced content across their network.</p>

-Album Surpassed 27M+ Streams in First 24 Hours

-LiveOne Has Live Streamed SZA Since 2018 to Its 200M+ Viewers

-Splitmind Music Collective Has Over 2B Streams Across 100+ Major Label Releases and Increased Revenues 37% YOY

LOS ANGELES, Dec. 23, 2024 (GLOBE NEWSWIRE) -- LiveOne (Nasdaq: LVO), an award-winning, creator-first, music, entertainment, and technology platform, announced today that its subsidiary Splitmind has produced the song “Chill Baby” on the new SZA album Lana. The song is written and co-produced by Splitmind’s Calvin “CD.mp3” Dickinson and Lil Yachty. Lana is officially part of the deluxe edition of SZA’s 3x Platinum album SOS.

LiveOne’s Head of Music Joshua Hallbauer commented, “We’re proud to be a part of advancing up-and-coming talent and excited to continue building our growing publishing catalog by working with groundbreaking and innovative young creators.”

Splitmind's recent collaborations include work with notable artists Wizkid, Drake, GloRilla, Brent Faiyaz, KYLE, Russ, and Blxst.

About LiveOne
Headquartered in Los Angeles, CA, LiveOne (Nasdaq: LVO) is an award-winning, creator-first, music, entertainment, and technology platform focused on delivering premium experiences and content worldwide through memberships and live and virtual events. LiveOne's subsidiaries include Slacker Radio, PodcastOne (Nasdaq: PODC), PPVOne, CPS, LiveXLive, DayOne Music Publishing, Drumify and Splitmind. LiveOne is available in Tesla vehicles and on iOS, Android, Roku, Apple TV, Spotify, Samsung, Amazon Fire, Android TV, and through STIRR’s OTT applications. For more information, visit liveone.com and follow us on Facebook, Instagram, TikTok, YouTube and Twitter at @liveone. For more investor information, please visit ir.liveone.com.

About Splitmind
Founded by Aidan “Halfway” Crotinger in 2020, Splitmind is a Los Angeles-based music collective of producers and writers from all over the world, including Grammy-winning, multi-platinum producer Jakik. Splitmind’s catalog includes 40,000 copyrights and 2 billion streams. Splitmind provides an infrastructure that allows creatives to share sounds while retaining their royalties - paving the path to give producers long-term ownership of their copyrights. Splitmind is a majority-owned subsidiary of LiveOne (NASDAQ: LVO) and was acquired by LiveOne in 2023.

Forward-Looking Statements
All statements other than statements of historical facts contained in this press release are “forward-looking statements,” which may often, but not always, be identified by the use of such words as “may,” “might,” “will,” “will likely result,” “would,” “should,” “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “continue,” “target” or the negative of such terms or other similar expressions. These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements, including: LiveOne’s reliance on its largest OEM customer for a substantial percentage of its revenue; LiveOne’s ability to consummate any proposed financing, acquisition, spin-out, special dividend, merger, distribution or transaction, the timing of the consummation of any such proposed event, including the risks that a condition to the consummation of any such event would not be satisfied within the expected timeframe or at all, or that the consummation of any proposed financing, acquisition, spin-out, merger, special dividend, distribution or transaction will not occur or whether any such event will enhance shareholder value; LiveOne’s ability to continue as a going concern; LiveOne’s ability to attract, maintain and increase the number of its users and paid members; LiveOne identifying, acquiring, securing and developing content; LiveOne’s intent to repurchase shares of its and/or PodcastOne’s common stock from time to time under LiveOne’s announced stock repurchase program and the timing, price, and quantity of repurchases, if any, under the program; LiveOne’s ability to maintain compliance with certain financial and other covenants; LiveOne successfully implementing its growth strategy, including relating to its technology platforms and applications; management’s relationships with industry stakeholders; LiveOne’s ability to extend and/or refinance its indebtedness and/or repay its indebtedness when due; uncertain and unfavorable outcomes in legal proceedings and/or LiveOne’s ability to pay any amounts due in connection with any such legal proceedings; changes in economic conditions; competition; risks and uncertainties applicable to the businesses of LiveOne’s subsidiaries; and other risks, uncertainties and factors including, but not limited to, those described in LiveOne’s Annual Report on Form 10-K for the fiscal year ended March 31, 2024, filed with the U.S. Securities and Exchange Commission (the “SEC”) on July 1, 2024, Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, filed with the SEC on November 14, 2024, and in LiveOne’s other filings and submissions with the SEC. These forward-looking statements speak only as of the date hereof, and LiveOne disclaims any obligation to update these statements, except as may be required by law. LiveOne intends that all forward-looking statements be subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995.

LiveOne IR Contact:
Liviakis Financial Communications, Inc.
(415) 389-4670
john@liviakis.com

LiveOne Press Contact:
LiveOne
press@liveone.com

Follow LiveOne on social media: Facebook, Instagram, TikTok, YouTube, and Twitter at @liveone.

FAQ

What was LiveOne's (LVO) revenue growth for Splitmind in 2024?

LiveOne's Splitmind subsidiary reported a 37% year-over-year revenue increase.

How many streams did SZA's Lana album featuring LiveOne's (LVO) production achieve in 24 hours?

The album achieved over 27 million streams in the first 24 hours of release.

What is the total stream count for LiveOne's (LVO) Splitmind music collective?

Splitmind has accumulated over 2 billion streams across more than 100 major label releases.

Which major artists has LiveOne's (LVO) Splitmind collaborated with recently?

Splitmind has collaborated with artists including Wizkid, Drake, GloRilla, Brent Faiyaz, KYLE, Russ, and Blxst.

What is LiveOne's (LVO) viewership reach for SZA content?

LiveOne has streamed SZA to its audience of over 200 million viewers since 2018.