On April 3rd MQA entered administration with 2 insolvency practitioners appointed by the high court.
The administrators have 8 weeks to submit a plan to creditors.
With very low turnover/top line revenue, and years of multi million £ losses (P&L nearing <£40 million> total since 2014) mounting, it would appear unlikely there will be any further investment in MQA.
While a white knight investor might still emerge it would seem that a selloff of the IP is the more likely scenario at this juncture.
The administrator’s plan will be subject to the public record at Companies House within 8 weeks.
I expect Audirvana should be making plans to cut bait, even if they don’t wish to divulge that at this time.
SCL6 is ready for sale if absolutely necessary. After not being included as one of the Bluetooth standards from the latest report.
MQA content is still a reality. If I will make a player, especially for sale, I will want my player to support a very large number of formats, if not all. So why Audirvana to do something? Oh, if MQA is too expensive that’s another story. The main goal of a company like Audirvana should be the clients satisfaction. If MQA still exist and is not illegal what’s the problem? If the things will change will see. But people with MQA dacs and/or files deserves an MQA player.
I agree with this message. And let’s add that the concept of MQA is good and technically useful for streaming on mobile devices.
Audirvana already do mqa.
No. They need ears
No again, you are better doing from your real Flac a 320 mp3 version for your phone…
Just teasing, i really don’t care about it
I just use original files… mine.
I think it can reduce the download bandwidth. Compared to having to load the original 24/192 Flac and Flac MQA at the same 24/192 resolution.
Note: I mainly use streaming services.
In 10 years, all people streaming will read they were actually listening to… instead of the real resolution they were buying…
But if Qobuz plans to open in my country I’m ready to try normal Flac 24/192 as well.
I know Audirvana does mqa. Just wanted to say is not necesary to do something because of the MQA Ltd problems imo. If you want to play ogg, flac, mp3, iso, dsf, ape, mqa - that’s your problem. The player must work.
MQA is not free, at its core it is a fee based licensing scheme. For Audirvana, Roon, TIDAL, or any hardware manufacturer to want to continue to pay a licensing or per stream fee to whoever eventually ends up owning the IP (or worse some patent troll), they’d probably want to know it was still a viable company that was still encoding more albums in MQA.
As of now that is very much in doubt, and so from a business standpoint it makes sense to start arranging for the day there is no more need to support MQA if it is to be a defunct format.
More should be known within 8 weeks of April 3rd what will become of things, but TIDAL already quickly announced they will not be an investor/buyer, and that they will begin offering standard hi-res FLAC files again, though they stopped short of saying they would discontinue MQA.
At $20/month in the U.S. the cost of TIDAL Masters is not currently very competitive, if they can become more price competitive by dumping the cost of MQA, I’d expect thats exactly what TIDAL would do, and if so, there will be no more reason for Audirvana or Roon to support it either (nor any DAC manufacturer).
It remains to be seen whether the MQA catalog on Tidal will continue to grow or stop at this level.
That’s the price in your country. In other countries costs half and they make “special offers” if you unsubscribe at even 2 euros/month for 2 months. Or 1 euro for one month (without needed to subscribe for a year). They play hard in East Europe and other markets not so rich where piracy also has big quotas. I know this very well because I had Tidal few years ago. And was much much more affordable than Qobuz. But I chose Qobuz for SQ, even if their catalog is usually small than Tidal. But at other aspects, including promoting of quality music, not just mainstream, or music editorials are much much better.
Yes, in my country Tidal HiFi Plus costs 258 THB or equivalent in US dollars, 7.50 USD is very close to the monthly Audirvana Studio plan.
Thats exactly why I said “in the U.S.” I’m aware that these services don’t cost the same thing in each and every market, the point being the U.S. market is a large one and likely where TIDAL needs to make ends meet with regard to costs.
Propping up MQA isn’t in the cards for TIDAL, they are in no financial position to do so, cutting costs is getting even more important with their own 4Q21-4Q22 year-over-year top line revenue having fallen nearly 38%, from $55.7 million to $38 million.
TIDAL are getting their butt kicked by Spotify, Apple, and Amazon, if not Qobuz too. Betting on MQA as a differentiator from their competitors seems to be a failed strategy at this point going by the numbers, and while I don’t think TIDAL will drop MQA immediately, I do think they will do so within about a year as a cost cutting measure and price/offering revamp, at least the in the U.S. market anyway.
On 2 November the administrator filed a progress report with the High Court detailing the status of winding down MQA Ltd.
The fire sale price to Lenbrook was just £100,000, with £30,000 of that total set aside to satisfy an existing patent claim, ensuring that good title could be passed to the purchaser.
With tens of millions of pounds invested in MQA since 2014, this is a rather pathetic ending for MQA’s investors: