Napster accumulated deficit of $199 million
p2pnet news view | Products:- In the unlikely event you had any doubt at all about which way Napter II, the sad corporate zombie masquerading as the P2P file sharing application which launched P2P file sharing, is heading, doubt no longer.
Its accelerating elevator ride to the bottom continues with the number of its paid subscribers down 6.8% from Q1 to 708,000, says Coolfer.
“Its shares have plunged 95 percent in six years,” p2pnet quoted Bloomberg News as saying in July.
It’s now “takeover bait” for hedge funds, “zeroing in on a cash hoard exceeding the company’s market value,” said the story, also observing Napster hasn’t posted a profit in four years and its $69.8 million in cash and investments as of March 31 eclipsed the shares’ $52.1 million value.”
Net revenue of $30.3 million was down both sequentially and year-over-year,” said Bloomberg. “Net loss was down slightly both sequentially and year-over-year.”
Now, “Napster has an accumulated deficit of $199 million,” says Coolfer, wondering, “Will it pass $200 million in Q3?” and stating, “Absolutely.”
It adds:
“The company is fighting for life when the consumer market has clearly voiced its indifference to music subscriptions. What little demand exists for subscriptions won’t provide adequate return for the current number of players. Somebody needs to drop out.”
And you know who that’ll be —-
—- but maybe not.
Napster II hasn’t had one good day since Roxio bought it, unbelievable floods of media hype notwithstanding.
But somehow, it’s still there.
Stay tuned.
.
.Stumble It!
Coolfer - Napster’s Descent Continues as Paid Subscribers Drop 6.8%, August 12, 2008
p2pnet - Who will own Napster III?, July 29, 2008
Bloomberg News - Napster Takeover Looms as Funds See Cash Exceed Stock, July 21, 2008
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August 12th, 2008 at 4:50 pm
well, if napster II just had done what allofmp3 was doing (selling music instead of renting DRMinfected crapware with soundfilling inside) then they could have been successful,
But as one of those label bosses back some time admitted publicly they “had no clue” and everybody would have been able to sell them anything.
And exactly that happend! Anybody sold them anything and this idiots were just so stupid to buy from the guys that were no musiclovers but vendors for a technology that can and will not work and therefor keeps those vendors in a business relationship with those “no clue havers” for updating the DRM sheme that they sold them instead of a business modell like the russians used.
August 13th, 2008 at 2:12 am
Jon, unfortunately, I’m not sure that these losses mean much when it comes to Crapster.
They are the RIAA corporate icon of what a legal filesharing outfit is supposed to be, so they’ll just keep this corporate corpse alive for as long as it takes, forcing it down the throats of universities and schools.
I hope I’m wrong. What do you think?
September 26th, 2008 at 3:31 pm
NAPSTER SERVICE IS SOOO DISHONEST!!. I went on naptster to purchase a few songs and they used my credit card info to sign me up for a “free trial” which I didn’t know I was signed up for until 3 months later! - I told them that I didn’t want the membership and to refund me but they wouldn’t do it . Extremely dishonest people.