Updated, read below: Loudeye, which relaunched itself in 2004 as the “world’s biggest digital media company” (after its merger with OD2), is suffering from that hubris. It has announced another round of restructuring, but at the same time, raised its Q4 guidance.
It recently discontinued Overpeer, its P2P anti-piracy solution, and is now planning job cuts. The focus of the company on the music side will shift, in large part, to Europe, where it has its biggest customers (powering music stores at various ISPs etc).
Loudeye will continue to operate its digital media content services located at its Seattle, Washington headquarters, including encoding and samples services.
It is exiting out of music in U.S. and will run it out of London. It is also discontinuing work on a music store it was supposed to launch with a partner in U.S. (with an “unnamed North American retailer”).
Today’s announcement are expected to reduce Loudeye’s cost structure by approximately $2.5 million per quarter, or approximately 30% compared to Q3 2005 levels, said the company.
And oh, it is still on the block, if you’re interested…
Updated: A note from the PR for Loudeye: “Loudeye powers MSN Music in 13 countries, is the #1 seller of WMA formated music downloads in Europe and #2 overall behind Apple. They have the dual delivery mobile music service, one of the few globally, and have services live in more countries than anyone including Apple. Loudeye’s digital music store business has grown over 90% vs. last year, doubled its registered users in 2005 ending year with 4 million, and powers a global nextwork which includes MSN Music in 13 countries, O2 Germany mobile music service, promotional sites such as MyCokeMusic and of course various ISPs etc.”
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