Feeds

Napster rejects restructure reports

Not up for sale, either, company claims

5 things you didn’t know about cloud backup

Napster has denied claims the digital music company is on the verge of a major shake-up that could see large numbers of employees lose their jobs. It also rejected allegations that Napster's bosses are planning to sell the business - or shut it down.

The charges were made this weekend by sources, said a report at website Digital Music News, to be "close to the situation".

But while one Napster insider said the claims sound like "idle New Year speculation... all the plans I know of for Napster in 2006 relate to new products and expansion", industry sources told The Register they too have heard such allegations, in particular that the company is making job cuts here in the UK.

Results for Napster's most recently completed quarter, Q3 FY2006, which ended 31 December 2005, are due to be made public early next month. The company's second quarter, which ended 30 September 2005, led it to report a net loss of $13.61m (32 cents a share) on revenues of $23.38m.

Last week, Apple CEO Steve Jobs claimed the iTunes Music Store has an 83 per cent share of the US digital music download market. That leaves Napster battling the likes of RealNetworks, Virgin Digital, Yahoo! Music, WalMart and others for the remaining 17 per cent. UK-specific research put Napster's local share at 10 per cent - well behind ITMS' 54 per cent share of the market, but still in second place, just ahead of UK digital music pioneer Wippit.

Last month, Napster set up shop in Germany - the fourth market the company has entered after launching in the US, the UK and Canada. ®

The essential guide to IT transformation

More from The Register

next story
So, Apple won't sell cheap kit? Prepare the iOS garden wall WRECKING BALL
It can throw the low cost race if it looks to the cloud
Samsung Gear S: Quick, LAUNCH IT – before Apple straps on iWatch
Full specs for wrist-mounted device here ... but who'll buy it?
Apple promises to lift Curse of the Drained iPhone 5 Battery
Have you tried turning it off and...? Never mind, here's a replacement
Now that's FIRE WIRE: HP recalls 6 MILLION burn-risk laptop cables
Right in the middle of Burning Mains Man week
HUGE iPAD? Maybe. HUGE ADVERTS? That's for SURE
Noo! Hand not big enough! Don't look at meee!
AMD unveils 'single purpose' graphics card for PC gamers and NO ONE else
Chip maker claims the Radeon R9 285 is 'best in its class'
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.