MQA Declares Bankruptcy


https://www.musicbusinessworldwide.com/high-res-music-tech-company-mqa-enters-administration-in-the-uk/#:~:text=High%2Dresolution%20music%20technology%20company,the%20US%20and%20other%20countries.

 

The financials are eye-opening. Annual revenue never exceeded £700,000 while administrative expenses exceeded £4,000,000 for 2020 and 2021!

Does anyone think Bob Stuart took this much money out of the company?

Wow. So MQA has become another Dolby FM technology. But then, many in the industry thought MQA was a scam.

vinyl_rules

Showing 2 responses by yoyoyaya

@OP and Tuenefuldude - regarding MQA's financial situation...

MQA is essentially a software company whose success is dependent on licencing its technology to third parties, whether they be streaming services or hardware manufacturers.

MQA has had significant ongoing costs in software development, and remuneration of its staff, incuding its executive directors.

The key difficulty for MQA is that demand for high resolution streaming is in itself a niche and MQA faces a fundamental strategic difficulty in promoting a product whose attractiveness is essentially premised on the need to conserve bandwidth.

As such, the technology is being eclipsed by the easy availability of fast broadband connections and with 5g mobile telecommunications.

MQA's difficulties, I believe, are less to do with the general economic situation than with the fact that it's technology is becoming obsolete.

 

 

@tunefuldude. I think one way in which tighter economic circumstances would have impacted on MQA relates to the fact that hardware manufacturers are less likely to be buying licences for a technology that appears to be losing traction.