Beleaguered Napster reports wider quarterly loss

Apple iTunes“Online music service Napster reported a wider quarterly loss on Wednesday, and gave a lower-than-expected revenue outlook, sending its shares down as much as 10%,” Reuters reports.

“Shares of Los Angeles-based Napster fell to $3.67 in extended trading following the earnings report but recovered to $3.88. The stock had closed up 9 cents at $4.07 on Nasdaq,” Reuters reports. “Its net loss increased to $8.5 million, or 20 cents per share, for the fourth quarter ended March 31, from $4.4 million, or 10 cents per share, a year earlier, when it posted a gain of $5.4 million gain from the sale of its consumer software division.”

“At the end of March 31, Napster’s total paid subscriber base was 830,000 after adding 225,000 AOL Music Now subscribers who joined the service that month,” Reuters reports.

“Chief Executive Chris Gorog told analysts on a conference call the company has retained its relationship with UBS to assist in evaluating merger and acquisition opportunities but is also maintaining its focus on the business,” Reuters reports.

Full article here.
“Me Gorog. Me got secret plan.”

21 Comments

  1. “See, I told you there was money in subscription music!! ” Everyone wants in. All one million of them, hmmmm, maybe the same million that Microsoft wants to sell the Zune to.

    Soon to come to you in three different models: Crappy, crappier, and crappiest!! OK, for the few PC heads here, I am sure that they will work, maybe even run music with out a DRM ( errrr, maybe not, Bill likes DRM, you need DRM, everybody needs DRM, DRM makes a body good!! LOL )

    Morning all.

    en

  2. Napster ought to change their marketing campaign. Here’s a free idea “Napster: Still a steal.”

    Then all the thieves who loved stealing still can feel like they are stealing.

    In fact, why not let them find the songs on other subscriber’s hard drives.

    Woo – hoo!

    Stealing!

    That should at least gain another 500,000.

  3. They never mentioned how much cash Napster has left, i.e. What’s the burn rate? They’re burning 8.5 mil per quarter, how much time do they have left before they cease operations?

    That day will suck if you were dumb enough to buy a subscription.

  4. Napster hasn’t been flushed yet?

    Been circling the bowl for years now.

    Guess it takes a long time to rip the subscription service of millions of songs. That’s only what it’s good for.

    I almost bought a Windows PC to do the same thing, but then realized I only need a few thousand songs in order to be confortable with my listening habits.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.