GUVERA BOSS FENDS OFF SOCIAL MEDIA STORM
Written on the 10 June 2016 by Laura Daquino
GUVERA CEO Darren Herft has answered the critics following a social media mauling earlier this week of his company's proposed public float.
The music streaming company lodged its prospectus last week, planning to raise up to $100 million through an IPO and list on the ASX next month.
That would give the eight-year-old Gold Coast company a market capitalisation of around $588 million and a $1.3 billion valuation.
According to the prospectus, a loss of $55.7 million was posted for the first half of FY16.
Atlassian founder Mike Cannon-Brookes led the charge against Guvera earlier this week.
"No other company in the world could go into music and do what we've done on a global basis without spending this sort of money - point blank."
Guvera has recently spent around $50 million on label publishing rights paid to big players like Sony, Universal and Hungama in India.
"Hungama is the biggest Bollywood label in the world and they decided to work with us instead of Apple because they said the Apple Music model just won't work in India - if piracy is rampant around the world, live in Mumbai for six months to see that people will just not pay."
"The music industry turned over $36 billion in 2000 and $16 billion last year, so it lost $20 billion in revenue. Piracy is rampant. We could say, we're going to get 1 per cent of those people who are pirating and get them to pay. But really, are we really making a difference to the music industry and artists?
"We're not about building a business for us, we're about building a business for the music industry. We want to see artists rewarded again for their creativity, which goes amiss in Spotify, Pandora, Apple Music and all the other models hitting the market.
"We made a decision eight years ago that Australia needs tech companies and people need to invest in them. We are going to manage and house these all over the Gold Coast so we can start getting some wins for this part of the world."