It appears that Napster might be ready to say uncle, ZDNet is reporting. The company has stated they "do not have our heads in the sand regarding an M&A (merger and acquisition) transaction", which is more or less a nice way of saying they just might be licked. Over the march quarter their 512,000 strong subscriber base fell 7 percent as they transitioned to its free website model, but excluding 4,000 university subscriptions, their number of paid subscribers actually grew 26 percent year-over-year.
An analyst from Stifel Nicolaus & Co also cited in ZDNet's article said "Napster's still trying to find a working business model, which is bad from an operating standpoint", also noting that they see an increased likelihood that the company would sell, especially since the possibility came straight down from management.
Either way, things don't sound so good for the renegade-come-legit digital music service. Also of note is their website; it might be the fact that I'm on a Mac, but their site seems dishearteningly bare these days. not even a remnant of the hip Flash site they built when they offered the web-based free model. I guess time will tell what happens to the music libraries of all those subscribing users.
[via iLounge]
