RSSNapster Passes 500,000 Subscribers
By Ed Oswald | Published January 18, 2006, 11:51 AM
Despite rumors of its demise, Napster said on Wednesday that its subscription service had surpassed 500,000 subscribers, including some 50,000 non-paying college users.
Earlier in the week, Web log Digital Music News cited sources within Napster who painted a much less rosy picture of the company. According to the alleged source, layoffs are imminent and executives were looking into exit options.
The speculation came as Apple reported that it continues to see gains in its market share, claiming 83 percent of total digital music sales and leaving very little wiggle room for companies like Napster.
Questions about the story are sure to be asked during the company's third quarter financial results call, presently scheduled for February 8.
Nevertheless, Napster's subscriber base has grown by 100 percent over the past year. And Chris Gorog, the company's chairman and CEO, says Napster is running on all cylinders.
"With a track record of robust growth, exciting new development in the pipeline and over $100 million on our balance sheet, we are extremely excited about the future of Napster," he announced.
Last quarter, the company reported a USD $13.6 million loss or 32 cents per share, compared to a $16.6 millilon loss or 46 cents a share in the year ago quarter.
Yahoo Unlimited is cheaper...
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D'oh! I just signed up for Napster To Go and I've been really excited about being able to download any album I want at any time for a small, flat rate per month. Although, granted, I was already plotting my move to Microsoft/MTV's URGE when it launches.
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I do not understand why people are jumping on the Ipod bandwagon. I blame it on digital ignorance. People are too lazy to look for cheaper and better alternatives, or too busy. Maybe they are afraid of their peers laughing at them when their MP3 player is not an Ipod. Albums, and singles are cheaper at Yahoo! or Napster, becaue of competition. You buy an Ipod you are locked in to Apple, and their prices. The greatest thing is being able to download all new music each month for only 11.99 or 14.99. I own a Dell DJ and use that thing everywhere, and have thousands, of legal songs , and hundreds of legal albums from Yahoo! music.
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