“Napster-owner Roxio more than doubled its net losses year-on-year thanks mainly to increased spending on the relaunch of the music download service, which went live in October,” Susie Harwood reports for netimperative.com. “The company posted a net loss of $25.6m for the three months to December, up from a loss of $9.2m for the same period a year earlier. And, despite exceeding expectations for its core software sales business, third quarter revenue fell to $18.8m from $25.4m.”
“Napster had revenue of $3.6m and a pre-tax loss of $15.1m, while Roxio’s digital media software division had revenue of $15.2m and a pre-tax loss of $10.1m, including restructuring charges of $4.4m. Roxio said in December that it expects to significantly reduce Napster-related spending as its moves away from the launch quarter,” Harwood reports. “In line with this planned cost cutting, the company said last week that it would consolidate Roxio and Napster’s corporate functions and senior management teams into Napster’s offices in Los Angeles.”
Full article here.
MacDailyNews Take: Napster’s revenue was just $3.6 million since Napster 2.0’s beta launch back on October 9th? Ouch.
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