“With too many players jostling for too few chairs in the online-music game, a long-predicted shakeout appears to be under way,” Nick Wingfield reports for The Wall Street Journal.
Wingfield reports that servies such as MusicNow, OD2, and others are actively searching to sell their online servcies or raise capital. And “Los Angeles-based Echo never launched its service and its plans are now on hold as it tries to figure out how to distinguish itself from other music sites.”
As for number two, Napster, less than 1/10th the size of Apple’s market-dominating iTunes Music Store, Wingfield reports, “Roxio said it expects its Napster service to post about $5.5 million in revenue for the calendar first quarter, up 53 percent from $3.6 million in revenue in the fourth quarter. What Roxio didn’t remind investors is that the company had launched Napster in late October. Had Napster been in business the full fourth quarter, Roxio had previously said it was on track to report $5 million in revenue then — meaning it had a mere 10 percent in sequential growth. Roxio’s shares now trade for less than half of their value prior to its reintroduction of Napster.”
Full article here.