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Napster, deep red balance

enero 28, 2020

Deep red balance for Napster. The American company that for a long time, before the advent of Yahoo, had been iTunes' main competitor in the field of digital music, practically doubled its quarterly losses compared to last year: 8.5 million dollars against 4.5 million dollars.

Partly positive news came from the turnover which grew by 9%, reaching 29.1 million dollars. Napster can look with a little optimism also at the number of subscribers that grew by 37%, even if 225 thousand ex AOL subscribers are included in the share of 830 thousand, transferred according to an agreement entered into between AOL and Napster when the Music Now service.

Chris Gorog, CEO of Napster, despite the uninspiring figures, has made a profession of trust in the future: 'we enter into agreements with important companies and acquire customers more easily who stay with us longer'. Gorog predicts that the trend that is shifting the hardware axis from "pure" players to telephony may favor his company's strategies: "for the first time we will have an important ecosystem to turn to." The day before yesterday Napster and Motorola, in fact, announced a collaboration agreement on a new ROKR mobile phone.

Lastly, Gorog confirmed that the intentions to sell the business have not yet been put aside. Ubs, in charge of exploring proposals in this sense, remains in charge "even if we are focused on making our business grow", explained the CEO of Napster.

The market does not seem to have the same confidence as Gorog and has severely punished the actions of the Californian company. During yesterday's session Napster lost almost 8% on Wall Street; the massive sale of shares (almost three times the average daily volumes) was the result of forecasts that the current quarter is below analysts' estimates.