Napster, the music streamer formerly known in the U.S. as Rhapsody has posted a surprising $1.6 million profit in the third quarter of 2016. Maybe there is still hope for the financial future of streaming music....
After years of losses, Napster/Rhapsody posted a $1.6 million profit in the third quarter of 2016 on record revenue of $54 million. Profits are rare for music streamers and for Napster parent company Rhapsody International comes after several month of downsizing and office consolidation.
The surprise profit was first spotted by GeekWire in a footnote to a regulatory filing by RealNetworks, which owns 42% of Rhapsody after spinning it off almost 6 years ago.
If the music streamer can sustain profitability through several quarters, it will validate its business plan of paid only subscriptions, with no free tier. Apple Music and Tidal also offer no free streaming option beyond a trial period.