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BURBANK, Calif. - Loop Media, Inc. (NYSE American: LPTV), a prominent provider of curated streaming content for businesses, announced its plans to extend its reach into consumer homes with the introduction of several Free Ad-Supported Streaming TV (FAST) channels this summer.
The company, known for its multichannel streaming Connected TV Out-of-Home (CTV OOH) platform, is set to offer a variety of premium entertainment channels that have already gained popularity in commercial venues.
The expansion into FAST channels is expected to provide Loop Media with incremental revenue and increased visibility for its CTV advertising partners. Loop Media's FAST channel lineup will feature a diverse selection of premium genre channels, including the innovative Loop Trivia channel, which will be one of the first of its kind in the FAST environment.
Loop Trivia reaches over 25 million unique viewers monthly and will now offer a home-based interactive experience with categories such as Music, TV & Film, Sports, and History.
Other channels joining the FAST service include Loop Fresh Music, which aims to showcase emerging musical talents and original programming; Global Fashion Channel, offering a 24/7 fashion media experience; and a modernized Weather channel that intends to disrupt traditional weather broadcasting with regionalized video feed forecasts.
Jon Niermann, Founder of Loop Media, expressed enthusiasm for the company's venture into home entertainment, leveraging their extensive content library and expertise in audience engagement to set a new standard in the FAST TV landscape. Niermann recalled the company's past success with FAST channels on platforms like Roku (NASDAQ:ROKU) and Peacock and anticipates a positive reception to the return to consumer-side business.
Loop Media, Inc. is recognized for streaming music videos, news, sports highlights, and entertainment channels to various venues across the U.S., Canada, Australia, and New Zealand. The company's Loop TV service is designed to cater to businesses, offering a substantial library of premium short-form entertainment.
This move marks a significant step for Loop Media in innovating the home viewing experience by making its curated channels accessible to a broader audience. The information provided is based on a press release statement from Loop Media, Inc.
In other recent news, Loop Media, a leading streaming CTV platform, reported a decrease in revenue and gross profit margin for the fiscal second quarter of 2024.
The reported revenue stood at $4 million, marking a 26% decrease from the previous year, and the gross profit margin fell to 10.4% from 29.4% in the prior year. Amidst these financial results, Loop Media underwent significant leadership changes, including the departure of co-founder Jon Niermann as CEO.
In addition, the company initiated a direct offering of approximately 9.65 million shares at $0.15 each, anticipating gross proceeds of around $2.45 million for working capital and operational funding.
Despite the challenging financial results, Loop Media's stock price target was reduced to $0.50 from the previous $2.00, with the Buy rating maintained by analysts who remain positive about the company's future.
Recently, Loop Media also announced a strategic partnership with Outpatient Imaging Affiliates (OIA). This collaboration aims to enhance the patient experience in outpatient imaging centers across the United States by integrating Loop Media's curated content and digital signage into OIA's facilities.
InvestingPro Insights
As Loop Media, Inc. (NYSE American: LPTV) gears up to expand its curated streaming content into consumer homes, the company's financial health and market performance are critical factors for investors to consider. According to real-time data from InvestingPro, Loop Media currently has a market capitalization of $10.91 million USD, reflecting its position in the market. Despite facing a challenging environment with significant revenue decline over the last twelve months of 40.71%, the company's gross profit margin remains robust at 41.5%, indicating a strong ability to retain earnings from its sales revenue.
Investors should note that Loop Media's stock has experienced high volatility, which is a trend that often attracts traders looking for short-term opportunities. The stock has also seen a significant return over the last week, with a 9.52% increase in price total return. However, this short-term gain contrasts with a longer-term downward trend, as evidenced by price declines over the last three, six, and twelve months. The one-year price total return stands at a substantial -95.5%, reflecting the stock's performance challenges.
Two critical InvestingPro Tips highlight the company's current financial challenges: Loop Media is quickly burning through cash, and analysts do not anticipate the company will be profitable this year. These insights suggest that investors should exercise caution and conduct thorough due diligence. For those interested in a deeper analysis, there are additional InvestingPro Tips available, providing a more comprehensive understanding of Loop Media's financial and market position. Use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, and uncover the full spectrum of insights offered by InvestingPro.
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