Napster on the block?

Steve Rosenbush

Someday, I am sure, someone besides Steve Jobs at Apple Computer will figure out how to build a successful business around digital music. The new, legal Napster service, structured around the brand of the old, illegal Napster file-sharing system, is trying very hard, but victory is still a long way in the future. The most encouraging news in the earnings release that it issued August 2 was that its cash burn for the first fiscal quarter, which ended in June, fell to $9.6 million. That's down from a loss of $19.7 million in the first quarter of last year, although on a sequential basis it's modestly higher than the $9.3 million it lost in the fourth quarter of 2006. Revenues were $28.1 million, up 34 percent from the first quarter of 2006 and up 5 percent on a sequential basis from the fourth quarter of 2006.

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