New Napster Going Down Like Old Napster
You hadn't noticed over at Slashdot, the joke of a music service known as Napster is losing money rather rapidly. Roxio (the company that brought the brand back from the dead) is merging corporate headquarters into Napster's LA office, and is booting out Napster's current president.
The lesson here? Everyone from Walmart to Apple rushed to set up online music stores, when financial data from Apple clearly showed that the money wasn't really being made in the music sales - it was being made on the hardware side. Even though Roxio claims that Napster is second in the online music market, clearly that doesn't matter when it comes to the bottom line.
Napster may survive, but the next time you hear about the "online music revolution," think of Napster's financials.