Singles Beat Subscriptions, Sinking Napster
“Napster Inc., the name that launched the digital music revolution, is burning through cash and struggling to find an audience as a viable subscription service.
“The company reported a loss of $17 million for its fiscal third quarter — a smaller deficit than Wall Street had expected. Revenue soared 94% to $23.5 million. A year earlier, the company had a profit of $12.8 million, reflecting earnings from discontinued operations.
“The results underscored Napster’s difficulties in persuading music lovers to stop collecting music one song or CD at a time and to instead pay $14.95 a month for access to more than 1 million tunes.”
Dawn C. Chmielewski. Napster Posts Loss Despite Surge in Sales. LATimes.com. Feb. 9, 2006.
Joanna Glasner. Digital Music Biz Ain’t Booming. Wired News. Feb. 07, 2006.
CopyCense™: K. Matthew Dames on the intersection of business, law and technology. A business venture of Seso Digital LLC.