LiveOne, the digital media company known for its live music streaming platform LiveXLive, PodcastOne, and Slacker Radio, just released its Q3 2024 earnings transcript. On the surface, it's a story of solid growth, aggressive cost-cutting, and a laser focus on audio. But beneath the headlines lies a fascinating trend, a potential game-changer that no other analyst seems to have noticed: the explosive potential of their B2B partnerships.

While the focus has been on LiveOne's direct-to-consumer audio strategy, a quiet revolution is brewing in their business-to-business segment. CEO Rob Ellin, a seasoned media veteran with a knack for spotting billion-dollar opportunities (think Digital Turbine), has been strategically laying the groundwork for explosive growth through B2B partnerships. And the recent earnings transcript offers tantalizing clues to the scale of this ambition.

The transcript reveals that LiveOne closed a deal worth over $20 million with a major Fortune 500 streaming platform. This, according to Ellin, is just the tip of the iceberg. LiveOne has identified eight verticals for potential B2B partnerships and currently has a pipeline of 42 potential partners. This represents a dramatic increase from the 27 partners mentioned just last quarter. This aggressive expansion of the B2B pipeline hints at a significant shift in LiveOne's strategy, suggesting that B2B partnerships are no longer a side project but a central pillar of their growth plan.

To understand the potential of these partnerships, let's dig a little deeper. Ellin, drawing parallels to his experience at Digital Turbine, highlights the increasing need for companies to own their customer data and control their content offerings. This is especially true for commodity businesses like telecom carriers and auto manufacturers, who are facing rising interest rates and need to differentiate themselves in a competitive market.

LiveOne offers a compelling proposition for these businesses: white-labeled, customizable audio solutions that allow them to control their content and capture valuable user data. Imagine "Verizon Radio" pre-installed on every Verizon phone, or "Ford Music" integrated into Ford's infotainment system. This not only enhances the user experience but also provides invaluable data insights that these companies can leverage for targeted marketing and customer engagement.

The potential revenue impact is staggering. If even a small percentage of these partnerships materialize, LiveOne is looking at a massive revenue boost. Let's assume that they close 5% of their pipeline deals, securing agreements with just two of those 42 potential partners. Assuming these two new deals are on par with the current $20 million deal, this would translate to an additional $40 million in annual revenue, nearly doubling PodcastOne's current run rate.

But the revenue impact is just the beginning. These B2B partnerships could dramatically accelerate LiveOne's subscriber growth. If just one of these partners is a major telecom carrier, the subscriber base could surge by millions practically overnight. LiveOne's ambition to reach 10 million subscribers within five years, once considered a moonshot, suddenly seems well within reach.

Here's the hidden gem that no one else seems to be talking about: LiveOne is building a "flywheel" effect. B2B partnerships drive subscriber growth, which in turn increases audience engagement, driving ad revenue for their podcast business and creating a more attractive platform for both talent and sponsors. This virtuous cycle could propel LiveOne into a billion-dollar media powerhouse, leaving competitors scrambling to catch up.

Revenue Growth: PodcastOne vs. Slacker Radio

This chart compares the revenue growth of LiveOne's two main audio divisions based on data from the Q3 2024 and Q2 2024 earnings calls.

While the micro-cap market remains volatile, LiveOne is quietly laying the foundation for a massive breakout. Ellin's experience, the explosive growth potential of their B2B strategy, and the company's commitment to shareholder value through stock buybacks and dividends all point to a company poised for greatness. Is this the next billion-dollar media empire in the making? Only time will tell, but the clues are there for those who are paying attention.

"Fun Fact: The global podcasting market is expected to reach $94.88 billion by 2028, growing at a CAGR of over 31%. LiveOne's aggressive expansion into this market puts them in a prime position to capture a significant share of this explosive growth."