An email from the company to its customers was sent out Thursday indicating they are raising prices, from $9.95/mo to $12.95/mo for it's streaming music service.
From the email:
"For the first time in over four years, we are increasing the Napster monthly subscription fee from $9.95 to $12.95. This change will take place beginning on January 30, 2008."
Last month, the company’s CFO resigned as shares hit a new all-time low (they have since gone even lower). The company lost nearly $10 million in its most recent quarter, meaning with about $65 million of cash in the bank, Napster only has about 18 months until it will need to either raise more money or go bankrupt at its current pace.
With free competition in the streaming music space from companies like Imeem who are forging revenue-share deals with the labels, Napster’s latest business model may also die, much like the original p2p service.