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Music of My Life, Inc. (OTC Pink: MYLI) Positioning Itself as a Takeover Candidate by a Major







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Music of My Life, Inc. (OTC Pink: MYLI) Positioning Itself as a Takeover Candidate by a Major

Miami, FL -- March 27, 2018 -- InvestorsHub NewsWire -- EmergingGrowth.com, a leading independent small cap media portal with an extensive history of providing unparalleled content for the Emerging Growth markets and companies, reports on Music of My Life, Inc. (OTC Pink: MYLI).

“As a legacy brand, we have traditionally, and continue to this day, to deliver content via AM, FM and HD radio stations across the U.S. However, our recent foray into online delivery, has unlocked much-needed growth,” said Mr. Angell.

MYLI may not be at these levels much longer.

See the Full Report and other Press Release on Music of My Life, Inc. (OTC Pink: MYLI) on EmergingGrowth.com
http://emerginggrowth.com/?s=MYLI

Music of My Life, Inc.’s (OTC Pink: MYLI) terrestrial stations reach 10 of the top 40 radio markets in the U.S., covering more than 30-million POPS, and more than a half-million listeners a month.

At the heart of MYLI’s model is a content strategy that has kept the brand alive and popular for 40 years. “The fact that we are a legacy brand speaks to our ability to create user stickiness and keep our listeners tuned-in. This can only happen if the content is uniquely great,” ventured Angell.

“The secret has always been to use famous people as DJ’s. The audience identifies with their favorite celebrity, and when they hear them on the radio, they feel as though the person is in the room, or in the car with them. It’s that personal connection with a celebrity that only radio can offer, and it’s sustained Music of Your Life for 40 years,” said Angell. “We’re currently reaching out to a wide list of celebrities from television, music and the movies to host their own music shows, a Comedy Channel, and world class athletes to host a new Sports Channel”, adding, “Our primary revenue growth model is based on converting these celebrities’ social media followers into subscribers.”

He continued that the company is also exploring the deployment of live, uncensored streaming video with live call-ins. “Our listeners are already fiercely loyal, and we are keen on rewarding this loyalty through these continual improvements,” he said.

If the company is able to convert 5% of its approximately 500-thousand terrestrial listeners into subscribers—which it is more than capable given the user stickiness and high discretionary income of its target audience—it could net 25,000 subscribers paying $5.00 per month, within a year. Add to that, the number of social media conversions added with each new celebrity DJ, and the numbers begin to add-up quickly.

Acquisition target
An undervalued broadcaster with strong revenue growth potential, low delivery costs due to online streaming and an ingenious content strategy is likely to pop up on the radar of larger players in the sector.

This makes MYLI a potential acquisition target, underlining the prospect of exciting gains for its shareholders.

An ingenious content strategy that leverages on popular celebrities to create a unique user experience is what transforms ordinary radio stations into enduring brands—something MYLI has successfully achieved if its 40th year anniversary is anything to go by.

Tellingly, Sirius XM has realized that their growth is also strongly linked to Howard Stern, underscoring the role of celebrity presenters and DJ’s in creating user stickiness and growing subscriptions. In a 2016 interview with CNBC, Sirius XM CEO, Jim Meyer, noted that: “Howard has never been better,” and talked at length about him, underscoring the central role celebrity DJ’s and presenters play in the success of broadcasters.

“We are essentially riding on the same business model as Sirius XM, except that we dropped satellite delivery as it is extremely expensive, has transmission issues, and expensive end-user costs, compared to Internet delivery which is in your pocket, your car, in your home speaker, on your desktop, it’s everywhere,” noted Angell. This similarity with the largest player in radio strengthens MYLI’s case as an acquisition candidate.

Conclusion

In mid-2017, Sirius XM acquired a 20% stake in Pandora (NYSE: P) for $480 million, making it one of the biggest deals in the radio space in the recent past. The deal was not a full scale merger, but is expected to give Sirius XM a footing in the online streaming space. This means that Sirius XM is still hungry for a bigger piece of the online streaming pie, increasing the likelihood that it may be actively hunting for another deal in this space.

The limitation with a player like Pandora is that its greatest strength is online streaming, which is simply a delivery platform and not the product per se. The magic sauce is the content, and this is an area where players like Pandora and Spotify (NASDAQ: SPOT), lack a distinct competitive advantage. (Spotify is currently pursuing a direct listing on the NYSE, meaning no new shares will be created as its sole aim is to create liquidity for existing shareholders).

Both Pandora and Spotify leverage on algorithms that analyze user behavior to dictate which content they deliver. They don’t create content themselves. While the algorithms get it right most of the time, as shown by the millions of subscribers they have, they cannot create user stickiness in the same way celebrity DJs do. In contrast, celebrity DJs and unique, well-produced content creates loyal subscribers who rarely discontinue subscriptions, making this a better business approach since it enhances predictability and eases financial and operational planning.
This means that legacy brands such as MYLI may easily become the next big acquisition targets in the radio space in next couple of years. The stock is currently undervalued given its $1 million revenue potential from subscriptions over the next year vis-à-vis its less than $0.5 million market cap. Getting in at ground zero before revenue growth explodes or suitors line up for a deal (whichever comes first) is a great way of increasing the likelihood of market-beating returns.

MYLI may not be at these levels much longer.