Napster Group Plc (LON:NAPS) gave investors an update as it continues to work towards the launch of a new updated version of its streaming platform.

The company said that the integration of the MelodyVR and Napster businesses is now largely complete, creating greater efficiencies and significant cost savings, though it noted that commercially the two business will for a period continue to operate separately whilst investment is prioritised to the development of the new platform.

Development spending will be reduced for the MelodyVR  platform with app updates and new content streams being limited in the coming months, it added. Marketing activities will cross promote the brands and upon launch of the new platform MelodyVR customers will be encouraged to migrate to the updated Napster platform, the company said.

The launch of the new Napster platform is anticipated ‘later this year’.

Napster also this morning announced it had secured an increase in funding under a facility with Swiss investment group Nice & Green S.A up to a total of £8mln, which will be available on an accelerated basis so that the full commitment can be accessed by June 2021.

Together with a separate facility from Davis Capital, the company’s largest shareholder, it means the company has some US$40mln of total funding for 2021.

“We recognise that this has been a difficult period for shareholders, but we are incredibly pleased with our recent developments and believe that the acquisition of the Napster brand is transformative for our business,” said Anthony Matchett, Napster group chief executive.

“We intend to relaunch the Napster product later this year and to-date the reception to our plans has been overwhelmingly positive.”

Matchett added: “Our growth plans are ambitious, but operationally realistic, and we are excited about the growth potential and value that we can create for the music industry and for our shareholders in the coming years.”

Meanwhile, in a third separate statement, the company announced a new exclusive 12 month team-up with Portuguese mobile operator NOS alongside its 5G launch – as the network’s music partner the company will provide a selection of exclusive shows via the MelodyVR platform.

Customers will be given vouchers to access content on the platform as they upgrade to the 5G service.

Via 5G, users will be access “an extremely high-quality MelodyVR experience, without needing access to broadband or Wi-Fi”, the company highlighted.

“Building awareness of the MelodyVR offering in this way is a tried and trusted customer acquisition strategy as we look to increase our subscriber base ahead of the launch later this year of the new Napster global music platform of the future,” Matchett highlighted.

Lastly, Napster shared a new video investor presentation.

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