Feeds

Ad happy Napster turns Q3 profit to loss

Spending sonic boom

High performance access to file storage

Despite adding tens of thousands of customers, Napster continued to cough up tons of cash in its third quarter.

Napster's revenue increased 94 per cent year-over-year to $23.5m. Its net loss, however, grew to $17m from a profit of $12.8m in last year's Q3. Management preferred to focus on the addition of 66,000 premium subscribers to its music rental service rather than dwelling on the mounting losses.

"Napster had a strong third quarter, adding substantially to our premium subscriber base which now totals in excess of 500,000," said Chris Gorog, Napster's CEO. "We have grown our premium subscribers 110 per cent year over year confirming strong demand for Napster's subscription product." The company announced that it plans to roll out a free version of its service this year that will rely on advertising revenue.

Marketing expenses continue to chew through the company's cash stockpiles. Napster shelled out $15.4m on marketing last quarter as compared to $9.2m in the same period last year. Through the first three quarters of its fiscal year, Napster has lost $50.5m, while spending $42m on marketing.

During a call with financial analysts to discuss the third quarter results, Gorog downplayed speculation about Napster being acquired. ®

High performance access to file storage

More from The Register

next story
Feast your PUNY eyes on highest resolution phone display EVER
Too much pixel dust for your strained eyeballs to handle
Samsung Galaxy S5 fingerprint scanner hacked in just 4 DAYS
Sammy's newbie cooked slower than iPhone, also costs more to build
Microsoft lobs pre-release Windows Phone 8.1 at devs who dare
App makers can load it before anyone else, but if they do they're stuck with it
Report: Apple seeking to raise iPhone 6 price by a HUNDRED BUCKS
'Well, that 5c experiment didn't go so well – let's try the other direction'
Rounded corners? Pah! Amazon's '3D phone has eye-tracking tech'
Now THAT'S what we call a proper new feature
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Nvidia gamers hit trifecta with driver, optimizer, and mobile upgrades
Li'l Shield moves up to Android 4.4.2 KitKat, GameStream comes to notebooks
AMD unveils Godzilla's graphics card – 'the world's fastest, period'
The Radeon R9 295X2: Water-cooled, 5,632 stream processors, 11.5TFLOPS
Sony battery recall as VAIO goes out with a bang, not a whimper
The perils of having Panasonic as a partner
NORKS' own smartmobe pegged as Chinese landfill Android
Fake kit in the hermit kingdom? That's just Kim Jong-un-believable!
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.