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Subs get gloomy, Napster losses climb

Subscription-based music services lack that essential magic touch, with consumers abandoning them in droves – and Napster particularly hard hit.

Napster admitted last night that the number of subscribers to its service fell between April and May by 52,000 to 708,000. The company’s net loss grew 2% to $4.38 million.

Perhaps the only successful subs model in operation right now comes from eMusic. Unlike Napster, where most tracks are shrouded in DRM, eMusic’s entire four million track catalogue is available for purchase DM-free.
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