“Ahead of a Napster earnings call scheduled for early February, reports of a dire company situation have emerged. According to sources close to the situation, a substantial round of layoffs are now imminent. In comments to Digital Music News, the sources noted that executives at the company are also reportedly considering various exit options, including a fire sale or liquidation. A Napster representative countered the claims, noting that there are ‘no imminent plans for significant layoffs,’ while denying any intentions to liquidate or sell the company. Meanwhile, Apple has claimed a hefty 83 percent of the market, a dominance that has created a squeeze for Napster and others. The story is expected to develop over the next few weeks,” Digital Music News reports.

Full article here.

“Results for Napster’s most recently completed quarter, Q3 FY2006, which ended 31 December 2005, are due to be made public early next month. The company’s second quarter, ended 30 September 2005, led it to report a net loss of $13.61m (32 cents a share) on revenues of $23.38m,” Tony Smith reports for The Register.

Full article here.
If and when Napster takes a dirt nap, how will its wares “PlayForSure?”

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