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BOULDER, Colo. - Auddia Inc. (NASDAQ:AUUD), whose stock has declined 90% over the past year and currently trades near its 52-week low of $2.12, announced Wednesday a strategic shift for its faidr app from a subscription-based consumer service to a free platform, while pivoting to a business-to-business model targeting artists and music labels. According to InvestingPro data, the company faces significant financial challenges with negative EBITDA of -$7.52M.
The company will make its AI-driven ad-free AM/FM streaming service free to consumers, instead monetizing through artists and labels seeking exposure to mainstream radio audiences. The new approach, called Discovr Radio, will use AI to place new music into radio streams during what would typically be ad breaks. InvestingPro analysis reveals the company’s urgent need for new revenue streams, as it currently shows weak profit margins and rapid cash burn. InvestingPro subscribers have access to 13 additional key insights about AUUD’s financial health.
"Radio continues to be the perfect mechanism to break new artists, but radio tends only to play bands or tracks that have already gained the requisite popularity," said Theo Romeo, Auddia’s CMO, according to the company’s press release.
The Discovr Radio platform will consist of an AI Placement Engine and Artist Portal. The engine will aim to match new songs with appropriate listeners, stations and adjacent artists. The portal will provide artists with analytics on plays, listener reactions and demographic data.
Under the new model, artists and labels will pay a monthly subscription for guaranteed radio plays. The company claims its internal research shows a serviceable addressable market exceeding 100 million prospects.
Auddia plans to release an initial version of the Discovr Radio platform by the end of 2025 or early 2026, supported by a pilot program with participating labels and distributors. The company intends to eventually open the platform to other radio streaming apps beyond faidr.
The faidr app will allow users to rate songs in real time and access artist pages with links to music, merchandise and social media. With a current market capitalization of just $2.53M and a concerning Altman Z-Score, investors can access detailed financial analysis and Fair Value estimates through InvestingPro’s comprehensive suite of investment tools.
In other recent news, Auddia Inc. announced a significant business combination and restructuring plan. The company has entered into a non-binding letter of intent to merge with Thramann Holdings, LLC, aiming to become a holding company that focuses on artificial intelligence and web3 efficiencies. Under the proposed agreement, Thramann Holdings’ equity holders would own 80% of the combined entity, while Auddia shareholders would retain a 20% stake. Additionally, Auddia revealed a leadership change, with Executive Chairman Jeff Thramann taking over as CEO following the retirement of Michael Lawless. The company has also appointed three new independent board members, Nick Balletta, Emmanuel de Boucaud, and Josh Sroge, who bring expertise in AI infrastructure and entrepreneurial ventures. These changes mark a strategic shift for Auddia as it seeks to enhance its technological capabilities and corporate governance.
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