Roxio’s Losses Widen; Napster Cuts Deal With Rochester U


Roxio, the parent company of the new Napster, has reported lower revenues and greater loss: Q4 revs came in at $18.8 million, compared to $26.4 million in the year-ago quarter. Net loss was $25.6 million, compared to a net loss of $9.2 million in the year-ago quarter.

The company’s bleeding heavily on Napster: Revenues for the company’s online music division totaled approximately $3.6 million, representing two months of operation for Napster, and pretax loss was $15.1 million.

Roxio’s digital media software division recorded revenues of $15.2 million and a pretax loss of $10.1 million. This included restructuring charges of $4.4 million.

Separately, the company announced a deal with the University of Rochester that will allow all students access to Napster’s premium service beginning later this semester. Roxio will receive a fee from the university in exchange for that access; specific financial terms were not disclosed. This is the second such deal: Napster had cut a deal with Penn State in November last year.

In addition, Napster and the University’s Eastman School of Music will be developing ways in which Napster can begin to provide original content from Eastman students and faculty to service members across the entire Napster network.

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