Roxio doubles net losses
Napster II-owner Roxio more than doubled its net losses year-on-year – thanks mainly to Napster II.
It increased spending on the launch last October and 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, says a netimperative story here.
"And, despite exceeding expectations for its core software sales business, third quarter revenue fell to $18.8m from $25.4m," it says, continuing, "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 it moves away from the launch quarter and "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".
No doubt also Roxio hopes its cosy arrangement with the RIAA (Recording Industry Association of America) – under which it’s been able to insinuate Napster II downloads into Penn State and the University of Rochester routine – will help alleviate bottom line pain.
