Setlist

Description

Setlist is the world’s first integrated audio streaming platform, allowing users to enjoy all of their favorite audio content in one place. Setlist’s powerful suite of features, including cross-platform playlists, discovery page, content recommendations, content sharing, and more, is built by leveraging public APIs and SDKs of other audio streaming services.

Industry and Competitive Landscape

The audio streaming industry is growing rapidly. Globally, there are more than 600 million paid monthly active users, representing a total market of $16.4 billion in 2020. This market has been expanding at a compound annual growth rate of 5.4% and is expected to reach $18.9 billion in 2022 (Statista, 2020). Among the total paid subscribers, 49.8% or 296.7 million of them are paying for more than one audio streaming platform (Statista, 2020). This data highlights the decentralized nature of the music streaming industry and the problem that no single streaming service can accommodate all of an individual’s audio streaming needs. Setlist will initially target this specific group of our addressable market to solve this problem and create seamless audio streaming experiences for our users.

With regards to our competitive landscape, leading audio streaming services include Spotify, Apple Music, SoundCloud, and others. Each of these major industry players has its advantages and disadvantages. Spotify has a global reach and provides podcasting services but does not provide lyrics for all countries. Apple Music has a unique distribution channel in that all Apple devices come pre-installed with their music streaming app. Apple also forms exclusive deals with artists, but it does not offer collaborative playlists. SoundCloud features a user-friendly community and serves lesser known artists, but lacks an expansive library that includes all artists.

Each of these services shows different levels of limited audio availability. With Setlist, limited audio availability will no longer be an issue, as Setlist users can enjoy all of their favorite content and a complete set of features across all platforms. No other platform like Setlist exists that bridges the gaps between other streaming services. In that regard, we do not have any direct competitors. However, given the unique relationship we have with other streaming services, we will ultimately compete with them for app interface interaction.

Marketing Strategy

Reaching 100,000 users in the first three quarters is crucial for Setlist's success. To acquire these users and gather momentum, Setlist’s initial marketing efforts will target college students. College students comprise a significant portion of the total number of individuals paying for more than one streaming service and thus Setlist's college launch strategy accelerates new user signups due to a high interaction and music consumption rates among these students. Setlist’s execution strategy is as follows: Before official launch, we will roll out a private beta program for a limited group of users. Iterating on these findings, we will tailor our product features and prepare for an official product launch. A campus ambassador program and refer a friend feature will help fuel Setlist’s initial growth, targeted social media ads will contribute to expanding our user base, and adding support for an increasing number of streaming services will help capture a greater portion of the market.

Financial Projections and Investment Opportunity

We plan to capture 0.05% of our total addressable market and produce a net revenue of $5.6 million. Through our market strategy, Setlist is further projected to reach a net revenue of $340 million with a net profit of $52 million in 2025. In terms of Setlist as an investment opportunity, the structuring of our offer is in line with the funding needs Setlist has to reach our significant milestones. We’re looking to initially raise $1.25 million through a convertible note. This capital will be used to develop our beta version and support our marketing initiatives. We plan on raising additional capital through an equity financing round the following year. That capital will be used to iterate on our results from the beta launch and bring a complete Setlist product offering to market. In terms of exit strategy, there are numerous types of companies that will be interested in acquiring Setlist assuming it captures a significant portion of the market. That being said, our projected EOY 2025 valuation suggests early investors in Setlist have the opportunity to generate significant returns on their investments.