Kitty Still Tame; Napster Subscriber Tally Stay Flat

Napster managed to narrow losses during its most recent quarter, though subscriber numbers remained flat.

For the fiscal third quarter ending December 31st, losses moved to $2.8 million, smaller than year-ago drops of $9.5 million.  But subscribers, the fuel for growth, stayed level, and even dropped slightly.  According to the company, Napster ended the year with 743,000 paid members.

At the same point last year, Napster carried a more modest 566,000.  But that was before the company absorbed struggling rivals MusicNow and defunct Virgin Digital (US), a move that boosted subscriber totals to 770,000 by mid-2007.

Other aspects were mixed.  Revenues reached a record of $32.8 million, and Napster Mobile - a joint venture involving Ericsson - broadened within Europe and Latin America.  Despite those positives, cash burn continued, and Napster reported reserves of $69.3 million, down from year-ago reserves of $80.9 million.   

Permalink: http://www.digitalmusicnews.com/stories/020608napster

Send to a friend | Digg! Digg this! | Digg! Del.icio.us | Added by: Matt Williams (07/02/2008)

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