Thank you. Good afternoon and welcome to LiveXLive Media’s Business Update and Financial Results Conference Call for the company’s first quarter ended September 30, 2020. Joining me on today’s call are Rob Ellin, CEO and Chairman; Jerry Gold, Interim CFO; Dermot McCormack, President; and Norm Pattiz, Founder and Executive Chairman of LiveXLive’s wholly-owned subsidiary PodcastOne. I would like to remind you that some of the statements made on today’s call are forward-looking and are based on current expectations, forecasts and assumptions that involve various risks and uncertainties. These statements include, but are not limited to, statements regarding the future performance of the company, including expected future financial results and future growth in the business. Actual results may differ materially from those discussed on this call for a variety of reasons. Please refer to the company’s filings with the SEC for information about factors, which could cause the company’s actual results to differ materially from these forward-looking statements, including those described in its Annual Report on Form 10-K for the year ended March 31, 2020, Quarterly Report on Form 10-Q in the quarter ended September 30, 2020, and subsequent SEC filings. You will find reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures discussed today in the company’s earnings release, which is posted on its Investor Relations website at ir.livexlive.com. And the company encourages you to periodically visit its IR website for important content. The following discussion, including responses to your questions, contains time-sensitive information and reflects management’s view as of the date of this call, November 16, 2020, and except as required by law, the company does not undertake any obligation to update or revise this information after the date of this call. I’d like to highlight to investors that the call is being recorded. The company is making it available to investors and the media via webcast, and a replay will be available on its website in the Investor Relations section shortly following the conclusion of the call. Additionally, it is the property of the company and any redistribution, retransmission or rebroadcast of the call or the webcast in any form without the company’s expressed written consent is strictly prohibited. Now let me turn the call over to Rob. Rob?

Thank you, Tenia. Good afternoon and thank you for joining us today for our second quarter fiscal 2021 business update. Difficult times bring out the best in people. The foundation of LiveXLive has been built around a world-class management team and a board to deliver the first talent-centric platform focused on superfans. The LiveXLive COVID has accelerated our business development, maturation and brand recognition by multiple years as livestream festivals and concerts quickly progress from a complimentary offering to the primary means of delivering and watching and listening to live digital festivals and performances. We have derisked the business by diversifying our revenue streams with the recent launch of pay-per-view, the additional substantial advertising and sponsorship revenue component as a result of the acquisition of PodcastOne. And we recently announced a letter of intent to acquire E-Commerce Merchandise Company Custom Personalization Solutions, which recorded approximately $19 million in revenues in 2019. That acquisition is expected to close at the end of calendar 2020. I am pleased to report in the second quarter ended September 30, we recorded our 10th consecutive quarter of record revenue along with a 148% increase in contribution margin. And given the momentum we see in nearly all of our business verticals, we’re excited to raise our revenue guidance for the current fiscal year ended March 31 to between $63.5 million and $69.5 million. We also had a meaningful improvement in our balance sheet as shareholder equity increased by $20.3 million in working capital by $18.5 million. The improvement in our balance sheet was the result of a number of transactions, including two common stock transactions at $4.14, extended payment terms by over 12 months on $5.9 million of payables, and entering into a $15 million senior secured convertible financing agreement at $4.50. Over the last six months, LiveXLive livestreamed 103 events featuring over 1,500 artists generating content, which has been reviewed over 95 million times as compared to 22 events featuring 224 artists and 60 million last year. I’m happy to report that one of our trophy live event properties, Spring Awakening, has expanded to include a Spring Awakening festival in Cancun, Mexico, scheduled for late April 2021. We already have over $1.3 million in ticket sales; needless to say, there is significant pent-up demand for the return of live music events. Today LiveXLive has grown and evolved to be the leading talent-first platform focused on connecting artists with their superfans, building long-term sustainable valuable franchises in audio music, podcasting, vodcasting, OTT, pay-per-view, live streaming, and video on demand, and our distribution continues to expand. LiveXLive’s 24-hour linear OTT streaming channel now has a reach of over 300 million people on platforms like Amazon Fire, Roku, Apple TV, SLING, Xumo, STIRR, and both Samsung Smart TVs and Samsung TV Plus. We provide a platform for artists to simulcast globally across all digital and social platforms with a fully integrated stack of cutting-edge technology in-house production, distribution, marketing, and sponsorship. We have built an unequaled flywheel that has positioned us at the forefront of what we believe is the paradigm shift to live streaming and one that will continue well after COVID. New monetization features for artists include pay-per-view virtual ticketing, merchandise subscriptions, digital tours, and tipping, all of which create numerous revenue share opportunities for both LiveXLive and the artists. With our recent launch into pay-per-view, we have sold tens of thousands of tickets in over 120 countries and have exclusively produced and delivered livestream pay-per-view concerts by Grammy winner Pitbull, Modern Drummer Festival, Darius Rucker, K-Pop sensations Monsta X, and Wonho, as well as over 100 pay-per-view events with Live From Out There. Pay-per-view provides an opportunity to introduce millions of new visitors to LiveXLive, allowing us to grow our free registered users and build a robust data relationship with credit-holding customers at the top of our sales funnel. We are fortunate to have amazing music industry partners, including Live Nation, iHeart, numerous record labels and publishers, and of course, the hundreds of talented artists that make LiveXLive special, along with other partnerships, including TikTok, YouTube, Facebook, Twitch, Twitter, Tencent, and Daily Motion. We have an exclusive partnership with Tesla for over eight years, where LiveXLive subscription is pre-installed in every Tesla car sold in America. The LiveXLive app is pre-installed in 85 other automobiles and growing, as well as across major carriers, Verizon, Sprint, and T-Mobile. Through our distribution partners and B2B deals around the globe, we now have 936,000 paying subscribers. With that, I’m going to hand it off to Dermot McCormack, President of the company and my partner.

Thank you, Rob. One of the real bright spots over the last few months is the enormous progress we have made on the sponsorship front. We now have sponsorship deals with Pepsi, McDonald’s, KFC, Hyundai, obé Fitness, SIMPLE Mobile, Corona, Porsche, Chipotle, State Farm, Kia, White Claw, Mike’s Hard Lemonade, and Mentos Pure Fresh Gum. Most of these are new deals and we expect to see strong sponsorship and growth continue into the foreseeable future. We continue to produce a livestream of our proprietary weekly concert franchise, Music Lives ON, following the massive success of the Music Lives digital event, which we call our digital Coachella. The original festival broke all our streaming records with an audience larger than any live Coachella or Lollapalooza event. An incredible 50 million views in 179 countries, 5 billion views on TikTok and an average of over 200,000 concurrent users. The Music Lives event truly validated the value of live streaming. Music Lives ON has received over 8 million livestream views streaming more than 156 artists, and weekly viewership continues to climb, showing a growth in brand awareness and interest in this growing franchise. It is one of the only music franchises that has consistently streamed live music every week during COVID. In early July, we closed the acquisition of PodcastOne, which complements our music and video content stack, as vodcasts to our offering and diversifies our revenue model by adding a significant advertising and sponsorship component alongside our existing subscription business. We also have an experienced advertising and sales team, who tripled the head count of our overall team. With us today to give a business update on PodcastOne is Norm Pattiz, Founder and Executive Chairman of our wholly-owned division. Go ahead, Norm.

Thanks, Dermot. It's great to be here, and it's great to pass along some very positive information. We had a good quarter with positive EBITDA at PodcastOne and are beginning to see the turnaround economically in the ad market. I think we're poised for a strong Q3, and since the merger with LiveX, we've added 12 new podcasts with a total social reach of over 287 million and expanded our reach and programming with the launch of vodcast, part of the PodcastOne network, which of course are video podcasts. Our blue-chip sponsors that committed to our shows across our audio and video offerings are very, very strong and well-known. The Pitbull vodcast and podcast continue to surpass our expectations, and we've had strong buy-in and support from advertisers like KFC, Pepsi, State Farm, Clorox, Talkspace, and NetSuite, which is, to say the least, encouraging. This was especially important as we build a true 360-degree offering with Pitbull, including pay-per-view, vodcast, podcast, and social elements of the campaign. Additionally, we had successful launches of the Michael Irvin podcast, a podcast with Dr. Steven Gundry, a leading health and wellness expert, and a podcast featuring massive influencers, Amanda Cerny and Jacqueline Fernandez, with a joint total reach of over 132 million followers across Instagram, TikTok, YouTube, Facebook, and Twitter. The past quarter, the LadyGang featuring Keltie Knight, Jac Vanek, and Becca Tobin has achieved a huge milestone with over 100 million downloads. We just extended the deal with the LadyGang for another year, and we could not be more excited for what's in store for PodcastOne and LadyGang next year. We also would like to share details of two key hires that we recently made. Ilana Susnow, the Head of our Marketing and Audience Development, and Alistair Walford, the new Head of Production. Ilana is a veteran television marketing executive with over a decade at NBC Universal, and she'll oversee all marketing initiatives for PodcastOne and our numerous podcasts. Alistair joins us from Warner Bros., where he served as Director of Production. And prior to that, he led Gifted, Funny or Die’s commercial division, working with some of the top directors in the world and large-scale advertising campaigns; he will oversee all aspects of production at PodcastOne. These two key hires, new exciting programs are set to be announced shortly, and the overall podcasting industry, which this year is projected to gross over $1 billion in 2021. The future looks bright. Again, I want to mention that we had a good strong quarter with $5.1 million in revenue and $450,000 in positive EBITDA. That's our story, and I'm sticking to it.

Excellent, thanks, Norm, and Jerry – handing it off to Jerry, our Interim CFO. Jerry, you take over, please.

Thank you, Rob. So as the team has been saying, it's been a very exciting year for us, and it's certainly a very exciting quarter. As we've mentioned for the 10th year in a row, we are about to report record revenue of $14.6 million, with an adjusted operating loss essentially breaking even at $100,000 loss, across our operating division and record KPIs, including 29 live events, over 75 million live views, and 21% net subscriber growth year-over-year. On a consolidated basis, our revenue stands at $14.6 million, up 52% year-over-year from $9.6 million in Q2 of 2020, due in large part to the growth in our live event, sponsorship, pay-per-view services, and PodcastOne advertising year-over-year offset by a small decline in our programmatic advertising and subscription services year-over-year. As of September 30, 2020, subscribers reached 936,000, which includes certain subscribers that are subject to a contractual dispute, still a net increase of 161,000 from the prior quarter. We ended Q2 2021 with 53% of our revenue from subscription, 39% from sponsorship, advertising, and licensing, and 8% from pay-per-view ticket sales, significantly diversifying our revenue streams compared to the prior year when 94% of our revenue was from subscription and 6% from advertising. Our contribution margin grew over 148% year-over-year to $4.3 million compared to $1.1 million in the prior period. Improvement was driven by the growth in sponsorship revenue, the addition of PodcastOne advertising, coupled with overall margin improvements to 29.3% in the second quarter compared to 11.8% in the prior quarter. Our adjusted operating loss was $1.4 million in Q2, a 62% improvement from the adjusted operating loss of $3.7 million in the prior period. The reduction in the loss was driven by our operations, which improved by $1.9 million year-over-year, resulting in our adjusted operating loss approaching breakeven. In our Operating division, revenue of $14.6 million was up 52.5%; the growth is primarily from live event sponsorship, pay-per-view services, and the addition of PodcastOne advertising in the quarter, offset by a decline in programmatic advertising and subscription revenue, as I mentioned before. During Q2, our operations generated $5.5 million in sponsorships and advertising compared to $600,000 in the prior quarter. Our Q2 2021 subscription revenue was $7.7 million, compared to $9 million in the second quarter of 2020. This result reflects a decrease related to the contractual dispute I mentioned before, and as a result of that, we are not recognizing revenue on those subscribers at this point. We are very confident that our conflict will be resolved in our favor and that we will eventually be able to collect that revenue. Finally, we generated $1.1 million in ticket sales from the launch of our pay-per-view platform in May 2020. We expect the number of events and the average revenue per event across this platform to continue to grow throughout the remainder of 2021. Contribution margin of $4.3 million increased over 148% from Q2, as discussed before. In Q2, we spent $800,000 to produce 29 live events at an average cost of $28,000 per event, an improvement of over 90% year-over-year. In the prior year, we spent $2.1 million to produce eight events at an average cost of $262,500, demonstrating a dramatic decrease in that cost, which was a large contributor to our margin improvement. Of the adjusted operating loss, again, approaching breakeven compared to an adjusted operating loss of $2.1 million in the prior quarter; the improvement of $2 million was largely driven by improved contribution margin, although this was offset by increased operating expenses from our acquired podcast business. Turning to the corporate division, which mainly consists of general and administrative functions such as executive, finance, legal, and other areas that support the entire company, including any public company-driven initiatives and supporting functions. Again, the increased loss is primarily due to lower personnel costs and lower rent costs, driven by one-time COVID cost reduction savings from the prior period. Excluding non-cash stock-based compensation, amortization expense, depreciation, and certain non-recurring operating expenses, Q2 2021 operating expenses increased by $900,000, or 17%, to $5.7 million compared to $4.8 million in the prior quarter. This increase primarily resulted from the addition of PodcastOne during the quarter, offset by lower direct marketing costs and product development costs, partly driven by increased organic traffic from digital-only events. I think as Rob mentioned, we considerably strengthened our balance sheet. We ended Q2 2021 with $21 million in cash, up $8.5 million from prior earning cash of $12.4 million in the prior year, with increases largely driven by net cash proceeds from financing of $14.5 million, offset by net cash outflows from operations. Importantly, we strengthened our balance sheet with working capital increasing by $18 million due to the financing previously mentioned. One additional item I think we talked about is the addition of Custom Personalization Solutions, and Rob already mentioned the increase in our guidance. And that concludes my prepared remarks. Now I’ll turn it back to Rob.

Thank you, gentlemen. As you can see, we put together a world-class team of experts who have each built, operated, and sold multi-billion dollar businesses. We're really excited to continue to grow the team and you'll see very shortly, we'll be announcing a new CFO to the company, but really excited about the team and really excited about the prospects going forward. And so I'm going to open it up to Q&A, any questions you have.

Thank you. We will now begin the question-and-answer session. Our first question comes from Ron Josey with JMP Securities. Please go ahead.

Hi, this is David for Ron. First, can you walk us through the components of your full year revenue guidance and what gives you confidence there? Second, on the e-commerce acquisition for CPS, how do you plan to integrate that with the live and important events? And then on pay-per-view, how did Pitbull events perform and what does the pipeline of future events look like for pay-per-view? And then finally on advertising, can you talk about the progress around the sales force integration with PodcastOne? Thank you.

Okay. A lot of questions in one, which – let me try to answer first. So Pitbull, super exciting, we don't break down by revenues. But we did say we broke through $2 million of total pay-per-view revenues previously in a press release. So it's worked out extraordinarily well, but really what's worked out extraordinarily well is the entire flywheel. Not only is Pitbull and pay-per-view, he's in our podcasting, he's in our ambassador program, driving subscribers. And he's a long-term partner of the company. And I think you're going to see more and more of that. In terms of sponsorship, as you can see by the list of sponsors, almost on a weekly basis, we've been announcing another AAA sponsor from Pepsi to Corona, and you starting to see some of them be repeating customers or with Corona multi-year customers. And yes, I couldn't be more excited about the fact that LiveZone as well as Music Lives ON literally has a sponsor almost every single event. This is the first time we’re seeing that, and the acquisition of PodcastOne and the sales team that we got as part of the acquisition has been a tremendous help. Now we have an army of salespeople selling, which we've never been able to talk about our team. It's been, we hired our first sales guy last December and then COVID hit, and now all of a sudden you're looking at a sales team that has 15 people. So really, really exciting on that side. Jerry, you want to – Jerry or Dermot, you want to jump in on the others?

Well, I'm not sure which – the first question was about guidance. And I think what you've heard there is that we have greatly diversified our revenue streams, and the fact that our ticket sales for pay-per-view and the increase in our sponsorship and advertising and with the addition to CPS, we are quite confident that we can achieve the guidance that we just gave you.

Yes. And just to give you a little color, a couple of our major pay-per-views including Pitbull were delayed until October and November. So Pitbull, Wiz Khalifa, Nelly, Jeremih, a lot of ones we have announced are hitting in this quarter, so really exciting the direction where that's going and really excited about where we see this quarter.

Hopefully that answered your question.

And our next question comes from David Bain with ROTH Capital. Please go ahead.

Great. Thanks so much. I guess, first to start, pay-per-view revenue, that's trending well ahead of where we had it. I was hoping you could speak to maybe some of the ancillary revenue, particularly subscriber conversion, how that's maybe trended or trending from the pay-per-view events and maybe just the overall direct margins from pay-per-view now? And I would think that those would augment more upon the merchandising acquisition. Is that correct?

Yes. So we don't break it down, as you know, David, we don't break those down. What I can tell you is we've sold over 50,000 tickets. So very different from when you come into the flywheel with 95 million viewers where I come in for free, and then you've got to convert them, right? So these are coming at the top of the funnel. They're immediately becoming subscribers for free, but they're giving you a credit card. So actually locking and loading them day one, and then it's can you convert them into paid subscribers? I think you're going to see more and more of that kicking in as the merchant business kicks in, and we're already doing this. We're already giving you a fully immersive experience while watching an artist, no different than going to see Bruce Springsteen in concert and wanting to buy a hat or a T-Shirt. We give you the ability to chat, message, and buy merchandise with virtual or real merchandise. So now we have the ability to actually own those merchant or own specialty items in conjunction and empower us, and it gives the artists another revenue stream in partnership with LiveXLive.

Got it. Okay. And then in the past, we've discussed either an acquisition or your own path, maybe organically where you would acquire a European or global license. Is there any update there?

Yes. I would stay tuned. If you read between the lines, when our former CFO left, there was a big bonus for him if an acquisition of material size closed. So yes, we're still in very much an acquisition mode. I'm really proud of my team. We did these acquisitions effectively at $4 or better just like the financing was done. So we're doing with minimal dilution to our shareholders, and I would fully expect the company is laser-focused on expanding globally. And as you could see by our artists that are performing on our stages and the amount of pay-per-view that we're doing, the audience is everywhere, it ranges from K-Pop to other genres. We have buyers of our pay-per-view tickets all over the globe. So really exciting, and yes, we are laser-focused on expanding the operations overseas.

All right, great. And just a comment is great that you wrote a bifurcate for us, podcasts and pay-per-view and everything, and podcasts was ahead and nice to hear their EBITDA positive. Let others get in on the action. Thank you.

Thanks, David.

Our next question comes from Elliot Alper with D.A. Davidson. Please go ahead.

Great. Thanks. I want to ask about the CPS acquisition. I guess, how's that going to fit into the strategy of the company and how is this going to affect the margin mix and any color on the timeline of profitability of that business? And then secondly, just back to the financial guidance, curious if the change in guidance is including the contribution of your CPS acquisition. I know that hasn't closed yet and there'll be about a quarter of overlap, but just any color there would be helpful. Thanks.

So the first part of it, again, is in the flywheel that we built. You can listen, watch, attend, engage, and transact, and the beauty of this is on the merge side of it. Starting with the live side, I've already talked about, right, is into the flywheel that you can buy a hat or a T-Shirt, right, a memorabilia from it, but in podcasting, it gets even bigger because a lot of the revenues come from sponsorship, but they also come from direct marketing and response marketing. So imagine owning those products and owning into the flywheel, the ability to own our own products in conjunction with the talent. So I really energized and it gives us an opportunity to really take our margins way higher. Again, continuing to dilute as we built from day one with the commodity side of this business, moving towards ownership.

And the other part of your question, it's already profitable. So it would definitely be accretive from an EBITDA perspective.

Okay, great. And then I guess just following up, is that integrated into the fiscal 2021 new guidance? And then also, is there an organic revenue number you could share for the quarter?

So in that, we were not sharing what those numbers are today. What I would say to you is, as Norman articulated, like the podcast business sponsorship and advertising, right. Clearly, it was almost a haul and we have very smartly run that business to a very successful EBITDA number. So will the acquisition be extremely additive? Yes. The next acquisition is also going to be very profitable. We're not breaking down numbers right now, but we're excited about where the revenue growth is going. As Norm articulated, I think we added something like 250,000 social media users among the podcasts and vodcasts we announced. So we fully expect that each of these divisions of the company will be growing this quarter.

I have this strange concept, which probably comes from having funded PodcastOne myself, that being in the black is a good thing. And that really hasn't, I think, been embraced by everybody at the LiveXLive team. That's one of the reasons why we like this merger so much. We're going to grow and we're going to see audience growth and we're going to invest in that growth most certainly, but we always have our eye on the bottom line.

Yes. I think for everyone, just to highlight and finish, because I think we're going to be rushed off. As this company is laser-focused on the bottom line. We now can look at this business from a perspective where every quarter up until last quarter, we always talked about what our revenues were per event. The company now can be looked at revenues per hour. It's really getting exciting coming into the flywheel with so many different revenue streams coming from the same content, right? We added so many franchises as part of the acquisition with PodcastOne and the building of Music Lives and Music Lives ON. And hopefully, you'll have an opportunity to watch our award show, which will be launched in December. We've already had over 1 million, 1.2 million, 1.3 million votes on that already. If you don't know, Dermot and Garrett English, who is our Head of Production, was Executive Producer of the VMA's, which is still the most profitable piece of MTV. We have now launched the first-ever digital awards show. Think of it like the SPs of award shows. We're excited about the sponsorship around it, and the traffic around it. We're looking forward to the rest of this year.

Our next question comes from Jon Hickman with Ladenburg. Please go ahead.

I don't know who wants to answer this question, but how much did COVID effect your advertising on the Slacker side and on PodcastOne?

Well, I'll jump in on the PodcastOne side, it certainly had an effect. It's interesting, everybody's talking about how podcasts and audio listening actually went up during COVID, and that’s true. That's a good thing. More audience to sell, but there were certain categories, particularly sports, which were negatively affected because there weren't any live sports, which meant no sports commentary and talk about what's going on in sports. Without live sports, all of that kind of stuff was negatively affected and advertisers held back, but we're seeing them come back. Nobody's going to stop advertising, but they need to make sure that they get their supply chains back in line and that there are products that are going to deliver advertisers for products that they actually have to sell. We're very encouraged by what we see in terms of returning advertisers. But to say it didn't have an effect on us would be disingenuous. Of course, it did, but we're pretty good at what we do. We realize when you're in a digital medium, a keyword is being able to pivot to deal with any kind of situation that you wind up in. I think we've managed that pretty successfully.

Yes. And I'll just jump in as well. I think on the LiveXLive side, we benefited from COVID. At the beginning of COVID, we had hundreds of physical events canceled. But because we were the premier company that was delivering digital experiences, the pivot for us was pretty straightforward. And like Rob had said earlier, we built franchises in that period. We have been broadcasting on a weekly basis, and we've seen a tremendous shot in the arm in advertising that we could show that we expect to see.

So how does that jive with the comment about programmatic advertising?

Programmatic is just a piece or direct selling of the business that really took off. We excel in all forms, but particularly, our direct business really got a shot in the arm. We produce custom content and sponsorships, while programmatic can be a commodity. But when we put out into the world, particularly when all the live music was shut down we had a unique offering and will continue to do.

Okay. And then could you elaborate a little bit on this contractual thing with subscribers?

Sure. So in the course of our relationship under this contract, we have had some differences of view on the definition of certain terms. In reality, we have been – this is the second time we've been through it. And the first time we were able to resolve it very favorably. We are in the process of not only dealing with the contractual dispute, but we're in the process of trying to negotiate a longer-term and worldwide version of this contract. We believe that somewhere in there, we will come to a resolution on that. We're very confident in our position. We have a great relationship with Tesla. We had hoped to get it done faster, but negotiations take a while, as you know. Unfortunately, there are some accounting rules that my former colleagues in the public accounting world tightened up in terms of revenue recognition, so we are following that very conservative conclusion during this dispute that we will not recognize those revenues. But as I said, we’re 100% confident in our position and our relationship with Tesla, and we’re looking for a longer and even more profitable relationship with them, and believe it will get worked out.

Can you quantify how much that cost you this quarter? Looks like it was more than $1 million.

Yes. That’s accurate, it was more than $1 million. You can see it now in our 10-Q and in the press release.

Okay. So if you get it back, do you have to recognize it as a gain for revenue?

Most likely we’ll recognize it as special revenue.

Thank you. Just to clarify on that last point, the dispute is a portion of Tesla revenue, not the full revenue. And then, my question is, obviously advertising is key, and PodcastOne brought in a huge increase in the sales force. A question regarding integration: how well are the PodcastOne salespeople that you brought in doing in terms of selling the existing LiveXLive advertising inventory? Are they integrating well?

Let me answer the first part, and then I’m going to hand it to you, Dermot. Just to go back to the Tesla number. If you remember, last quarter, we took down a $700,000 number for one month because they had paid through May. So you can look at this number as about $2.1 million. So if you took that over a quarter, think about that in terms of what that could add in revenues going forward. And Dermot, why don’t you jump in on the advertising side?

Yes. A bunch of us on the call have been involved in many acquisitions and mergers over the years. This to me was amazing because the cost of the advertising inventory on each side of the company is so complimentary. The success was almost instantaneous. We were able to partner on Pitbull under a multiple platform deal right out of the gate. Across the board, we have multiple deals gone out, we’re selling together. There are certain relationships with agencies and brands that PodcastOne has – there are some relationships that we have and it's super complimentary, maybe one of the most successful merger integrations I’ve seen. We’re seeing results and we’re going to continue to see results.

Look, one of the reasons why I did this deal in the first place was because it created a great opportunity to be in the podcast business and have something that no other podcaster has. It probably comes as a surprise to no one to know that there are bigger companies that are now in the podcasting business, but they’re all primarily from the audio business, whether it’s iHeart Media or in the platform side of the business, companies like Spotify. What we wanted to do and what I think we’re doing successfully at our sales department – our sales departments working together are doing successfully has had something to offer that nobody else has. And that’s getting in a premium position in that area. Our salespeople are talking to each other daily, they’re passing information back and forth. It's also one of the things that’s driving on the podcasting side. We’re going to be doing a lot more things that are music-focused. At Westwood One, we were a music-focused company. It’s nice to be back in the music business in a much bigger way. But what you need to keep your sales department excited and on the cutting edge are doing exciting, cutting-edge things. That’s exactly what we’re doing, being owned by LiveXLive and having everybody working on all of the assets that we have for the benefit of advertisers, consumers, and of course, artists first.

Okay, just on that point. The lead time for advertising and subscription sales, I believe is pretty long. So this quarter I would believe does not represent the full potential and kind of the best is yet to come in terms of what the salesforce can do. Correct?

That’s a fair statement.

Our next question comes from Brian Kinstlinger with Alliance Global Partners. Please go ahead.

Great, thank you. You highlighted 2019 revenue trends per CPS, but that’s quite gated given it predates COVID. Can you give us more recent revenue trends or some kind of information that helps us model a revenue contribution going forward?

Yes. The way I would look at this is, we publicly stated that they’re going to do $20 million plus this year. I would think of this very much like PodcastOne. We said it’s going to be accretive to the balance sheet. We said it’s going to be accretive to EBITDA. So I’ll be thinking of it very, very similarly to the success of the acquisition of PodcastOne and very similar to the success of Slacker and how profitable that is today. This is going to be accretive in every way for the company immediately.

Great. And then, is there a thought to offering paid subscribers discounts to pay-per-view events? That’s adding more consumers at higher prices to the recurring model?

Absolutely. You’ll see some of that crossover, and you’ll see some of that material relationship, including in podcasting. You may see subscription coming. We’re certainly going to use the inventory at podcast to drive subscribers. Adam Corolla has a very unique basis; Shaquille O’Neil, T.I., and many of our podcasters can bring in subscribers as well. What’s happening in the industry, right? That crossover is coming, which we’re laser-focused on. This is a big percentage of our business versus Spotify, who’s paying $350 million for the same amount of revenues for $40 million companies. They’re putting it into that flywheel and using it for two functions: to keep subscribers from leaving and to bring in new subscribers. The beauty for us is, it’s material and the materiality of turning them into subscribers and them staying long-term on the platform is about diluting the commodity part of the audio business that we all share. I think you’re going to see our margins continue to improve.

Great. Last question. You guys talked about $1 million in advertising and sponsorship with a legacy business last quarter. Is there a like-for-like number for this quarter?

Jerry or Dermot?

Yes. Well, you have to go back to the first question. I think if you look at the difference between advertising and sponsorship in the first quarter and the second quarter, I don’t have it open in front of me. That difference basically comes – well, you can’t really do it that way.

Many of these relationships are not single, so they go over several quarters. Then many of these relationships are long-term deals.

And just to highlight again, as you look at the next quarter, obviously, I can’t give you too much detail, but we announced Pitbull was going to happen in September and was pushed to October. We announced Wiz Khalifa and multiple those other ones; they all got pushed to October, November, December. So you’re going to see both sponsorship as well as pay-per-view; you’re going to see more events mature. We’re in the infancy stage of pay-per-view, but it couldn’t be more exciting. The most important part of pay-per-view is, you’re getting a credit card. So the consumer that’s coming in, that superfan that’s coming in, is coming at the top of the funnel. I think you’re going to see a higher percentage of those converted to subscription. I think we stated in the last call 6% or 8% converted to subscription.

And Rob, just to add to that, when the flywheel really works, we got pay-per-view, we got a sponsor working with us on the pay-per-view. We got conversion to subscribers and merchandise sales and all sorts of different bundling opportunities. So when it works, like it does with Pitbull and many of the events we’re doing, we hit all our revenue goals. Just know that advertising is a big part of the pay-per-view opportunity too because we have a strong exclusive relationship with the artist.

All right, thanks, guys.

This concludes our question-and-answer session. I would like to turn the conference back over to Rob Ellin for any closing remarks.

Yes. Just final remarks is I want to thank my team and thank you shareholders for staying with us during this difficult time. Live music was completely shut down; our tentpole events of Rock in Rio and EDC did not happen this year. We’re really excited, we mentioned today, that we launched Spring Awakening, Cancun, or trophy property in the live business. So we normally do 30 to 40 live music events a month, plus Spring Awakening, which was $15 million, $16 million in revenues. We’re really excited to see the thirst and the energy when COVID is done. And it will be one day, right? Live music is going to come back. My team humbly believes it’s going to be like the Roaring Twenties. We really get to come back and we’re the only company in the world that is positioned today to not only prove that live streaming is the next-generation music video and is driving audio sales, but it’s also going to drive ticket sales. It’s going to be just like sports 30 years ago; there was a fear factor when ESPN came along that people wouldn’t attend live events. What happened? More teams, more players, more money, and billions and billions of dollars. I feel the same way about music. It’s very sad what’s happening to the community. My team is thoughtfully partnered with Hyundai and Porsche to put live events inside of theaters that were literally going bankrupt. The sponsors gave real money to help, and we put artists to work. So really proud of what we’re doing and really proud of what we’re building here. I think when COVID is over, we’re the only company in the world that is truly positioned to do both Rock in Rio and sell subscriptions. We will sell digital tickets and the world will grow with that. We’re positioned to have the entire flywheel from production to sales and everything in between with some of the top executives in the world who have built and exited multi-billion dollar businesses. So, great team we have, great partnerships we have. We survived this and we’re going to grow bigger and bigger. I want to thank everyone for spending the time today. I appreciate your support and look forward to talking with you next quarter.

The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect.