1 Comment

Summary:

Struggling online music player Napster (NSDQ: NAPS) has reported Q2 revenue of $30.3 million, a decline of 5.9 percent from $32.2 million a…

imageStruggling online music player Napster (NSDQ: NAPS) has reported Q2 revenue of $30.3 million, a decline of 5.9 percent from $32.2 million a year ago. Net loss was fairly flat at $4.3 million ($.10 per share) compare to a loss of $4.2 million ($.10 per share) a year ago. The company said it had 708,000 paid subs at the end of the quarter, a decline from 760,000 at the end of Q1. The company also touts good results from its new MP3 store, but it’s hard to get a grip on what these numbers actually mean: “The introduction of MP3

  1. It means that their churn rate and customer acquisition costs are out of whack. They spend more on marketing to generate a subscriber than they earn on the lifetime value of a subscriber, and they've already burned through the upfront investment capital allocated to getting started.

    Share

Comments have been disabled for this post