ROXi, a music-streaming service founded in 2014, is currently in the process of raising millions of pounds in new capital within a tight timeframe. The company has enlisted the help of professional services firm Begbies Traynor Group and Rockefeller Capital Management in this pursuit, according to sources at Sky News.
ROXi’s unique selling point is its status as the world’s first “made-for-television” music streaming service. This allows viewers to not only stream millions of songs, but also download hundreds of thousands of karaoke tracks. With a star-studded list of investors, including names such as Simon Cowell, Kylie Minogue, and Robbie Williams, it’s no surprise that the company has drawn attention from major players in the industry.
In addition to the aforementioned celebrity investors, ROXi also counts Alesha Dixon and U2 bassist Adam Clayton among its shareholders. Notably, three of the world’s biggest record labels – Sony Music, Universal Music Group, and Warner Music – also have stakes in the company. Beyond the music industry, prominent figures from the business world such as former Saracens owner Nigel Wray, former McLaren boss Sir Ron Dennis, and private equity tycoon Guy Hands have also shown their support for ROXi.
Having already raised £40m from its impressive roster of investors, ROXi has hinted at a potential stock market flotation as its long-term goal. However, it has recently been in discussions with a US-based broadcaster, believed to be Sinclair, and an American media company regarding the sale of an equity stake. While no deal has been officially confirmed, sources suggest that talks have been ongoing for some time.
Earlier this year, ROXi announced a partnership with Sinclair to launch interactive music channels on compatible devices. CEO Rob Lewis expressed excitement over this collaboration, stating that it would revolutionize the concept of broadcast TV for millions of households across the US. The channels would offer the same interactive capabilities as a music app, without the need for a separate download.
In recent weeks, Begbies Traynor has been reaching out to potential investors on behalf of ROXi, with a deadline for securing new funding reportedly set for early next month. A company spokesperson has stated that securing capital from the US is crucial for ROXi’s plans to roll out FastScreen technology, which will allow audiences to access traditional linear TV channels in the same way they currently access streaming services.
As of now, it is uncertain whether an equity investment from Sinclair or another American broadcaster will move forward and on what terms. In response to inquiries from Sky News, a ROXi spokesperson stated that the company is actively exploring various funding options from existing shareholders, management, and multiple US broadcasters and expects to make a positive announcement soon.
CEO Rob Lewis has emphasized that ROXi is not a competitor to popular music streaming apps such as Apple Music and Spotify. Instead, the company aims to provide customers with a unique visual music experience on their living room TV. One investor has praised ROXi’s impressive list of supporters and expressed confidence in the company’s success.
Should its search for new funding not be successful in the coming weeks, it is unclear what ROXi’s next steps will be. According to a company spokesperson, financial results for the previous year are not yet available. However, it is expected that a new chairman will be appointed to replace Rupert Howell, the former ITV executive who recently stepped down from the role, upon the successful conclusion of ROXi’s funding search.
