Napster reports increasing losses as spending increases

The company which started it all by releasing one of the first p2p applications on the internet, Napster is in trouble again. Napster came out with their revenue reports and the numbers are not very healthy.

The company has posted a wider quarterly loss as they have suffered due to increased spending on sales and marketing initiatives. This loss comes despite the fact that the company posted revenue, which has almost doubled, compared to previous year’s figures.

Napster reported that they had a strong quarter and has more than 500,000 subscribers. Revenues from these customers accounts for almost 86 percent of their overall revenues. The losses were in the region of $17.0 million, or 40 cents per share in the last quarter of the 2005. This is almost double the losses they made in the same period in 2004.

The company has big plans for this year and is planning to offer more products and services on their website. One of these new services would be supported by online advertisement and might help the company improve their position in the market.