“Napster owner Roxio this week sold virtually its entire consumer software division to Sonic for $80 million so it can change its name to Napster and focus solely on getting the music service off the ground. And contrary to charges by Apple fanatics, Napster was already making money and is now poised to make even more: The Napster division was previously earning $7 million to $8 million a quarter and will likely make about $40 million in its first year, according to the company. “With the news today, we are on a path to become a very well-funded pure play in one of the hottest sectors in the consumer technology market,” Napster CEO Chris Gorog said. Indeed, the new Napster has about $130 million in cash, all of which will now go to promoting its music service,” Paul Thurrott writes for WinInfo in his weekly “Short Takes” column.
Full article here.
MacDailyNews Take: $7 to $8 million a quarter, huh? As of June 26, 2004, Apple had $4,966,000,000
Sure, Roxio/Napster might “make” $40 million this year, but is that “profit” or “sales”? More likely, it’s “sales.” If they expect to realize $40 million in profit, that might be saying something, but that means they’d have to sell a hellulva lot more than just $40 mil. And there’s no way that can happen, since they’re doing $7-8 million in sales per quarter. They’ll probably burn through that $130 mil in a coupla years and be done. The only question is, will they go out with a bang? Or a whimper?
Posts from “twelveightyone” – (missing an ‘e’ aren’t we?) – just serve to illustrate my opinions on the Mac-zealot.
I thank MacDailyNews for linking to my site and providing me with a steady stream of abuse from Mac Fanatics to prove my point far more eloquently than my words ever could.
I think the point of the Napster issue was to show that the other stores are not floundering about waiting to die. Other online music stores are turning a profit too. While I don’t think this immediately spells doom for Apple, it certainly shows that not everyone is flocking to iTunes for music. Nobody stays on top forever.
You can’t compare Roxio to Apple. Roxio does Napster, and nothing else. Most of Apple’s money comes from Macs. Virtually ALL of Apple’s banked cash came from Mac sales.
Any previous posts made here attributed to me were not made by me, BTW. I couldn’t care less if MacDailyNews readers visit my site or not. Unless of course you’re interested in Windows news for some reason.
However. “twelveightyone”: Drop me a note, tough guy. I’d love to me you as well.
G5Man: It’s true that I was one of the first cable modem customers in the US (not DSL). That’s not a matter of pride, it’s just a coincidence of location.
–Paul
nothing like accepting a challenge to
“me you”.
hmm, you would think that is the one part in the whole response that he should have written correctly. it’s like choosing to wear the “kick me” sign rather than the latex suit.
Paul Thurrott….. how’s your flame war with Bill Palmer going? still upset that he writes better, and people actually listen to him? it’s okay, there’s room for everyone in this free country. but, 13 paragraphs of supposed “debunking”? please don’t quit your day job.
OMG, This guy Thuroughoditiohgthdiot is such a hack!
Why do you post even one word by him?
He is the computer world’s veneral desease!
The previous post linking to my site, was not written by me. I have no interest in this issue, and stumbled upon this discussion by accident. I’m really not that egotistical to think my opinions matter that much to Mac-zealots. Then again, maybe I am.