Newly appointed CEO Beth Appleton has hit the ground running since taking the reins of troubled music tech company Jaxsta (ASX: JXT) by revitalising the Company’s revenue stream with a focus on monetising their 116,000 users which have to date offered virtually no financial contribution.
While the Company has remained on life support through a combination of capital raising and its free user experience, Appleton’s appointment in April 2022 comes with the mandate to actually turn that huge database into some shareholder value.
Amongst her first round of transformations, Jaxsta has launched an Enterprise subscription model which has been created specifically for larger organisation in the music industry. While the cost of the subscription has not been published, it will be higher than the USD $999 Business subscription (also new) which is the tier below Enterprise and reduce Jaxsta’s reliance on their $49 Creator subscriptions from independent music professionals.
In addition to the revitalised pricing structure, Appleton has confirmed that Jaxsta will introduce new limits on free access under her transformational roadmap to monetise the platform which networks the music industry with its artists and official contributors.
“Without official music credits the industry is hindered from accurate efficient revenue collection. Without a platform for discovering who has contributed to a song or how to connect with the copyright representatives efficiently, opportunities are lost,” said Appleton.
“From a data perspective. Jaxsta is the source of truth the music industry has been looking for and our platform now has a self-serve solution with this new B2B oriented subscription offering.”
Further seeking to capitalise on the 116k users that have accounts on the Jaxsta platform and 62.9 million total pages that house 41.2 million official records, the Company will introduce ads on the site for its free users. Those ads will be powered by Google’s AdSense where Jaxsta will gain revenue from its free user website traffic.
Despite being an entirely digital business, most of which have thrived through COVID-19, Jaxsta has been plagued by a lack of revenue from its burgeoning database – prompting repeated capital raises and shareholder dilution.
Appleton, who was promoted from her previous role at Jaxsta as Chief Marketing Officer, will be familiar with the shortfalls of the old business model and will take over the CEO role from Founder Jacqui Louez Schoorl as part of Jaxsta’s cost cutting initiatives. This appears a step in the direction for Jaxsta which reported net losses of -$5.7m, -$10.4m and -$20.1m over the past three financial years.
Under Appleton’s leadership and roadmap, Jaxsta is targeting profitability within the next 18 months.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, bloodstock enthusiast and former Analyst.
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