| 15.8°C Belfast

Electric Jukebox planning IPO in bid for top family music entertainment product


Electric Jukebox's Rob Lewis said the market opportunity for Roxi "is huge"

Electric Jukebox's Rob Lewis said the market opportunity for Roxi "is huge"

Electric Jukebox's Rob Lewis said the market opportunity for Roxi "is huge"

Music entertainment firm Electric Jukebox has announced its intention for a stock market flotation next year as it looks to take on the likes of Apple, Amazon and Spotify.

It is understood the London initial public offering (IPO), slated for the first half of 2018, will see the firm raise tens of millions and value it at more than £100 million.

Founded by British entrepreneur Rob Lewis in 2014, the money raised will be used to roll out Electric Jukebox's new Roxi product, a set-top box that allows users to stream music, play music trivia games and partake in karaoke.

It is thought that FinnCap, which has been appointed the company's corporate finance adviser, has already been sounded out by institutional investors interested in becoming shareholders through the flotation.

It comes as the group closes a 14 million US dollars (£10.9 million) private funding round.

Electric Jukebox's largest shareholders are currently Mr Lewis and investment firm YOLO Leisure & Technology.

It is also backed by the likes of ex-U2 manager Paul McGuinness and David Munns, the former manager of 1980s rock act Bon Jovi.

Also on the shareholder register are a group of 50 high net worth investors from the UK, Canada and Hong Kong.

Mr Lewis said: "We want to be the number one family music entertainment product. Our medium-term target is to reach 10% of the market globally following IPO.

"The market opportunity for Roxi, aimed squarely at the family market, across the US and UK markets is huge."

The company said Roxi turns the idea of Spotify, Amazon and Apple's app-led mobile music streaming services "on their head" and also aims to tackle what it called the growing problem of "excessive use of personal devices and social media by children".

The group is targeting revenues of more than 1 billion US dollars (£777 million) over the next five years as it looks to take a 10% share of the paid-for music streaming market.

Punters pay a one-off cost of £199 for Roxi, after which the first year of use is free.

From the second year, users can continue using the service for free with advertisements, or pay £52 a year to go ad-free.

Mr Lewis added: "800 million people used to buy CDs and yet just over 100 million are streaming music today with 80% of these being millennials.

"Just 5% of people subscribing are families, less in mainland Europe."