Napster has turned around its initial copyright theft model into a legitimate and profitable company.
The company today announced its forth-consecutive quarter of positive cash flow and revenues of $127.5 million to year ending March 31, 2008."Napster concludes fiscal 2008 with annual revenue growth of 15%, positive cash flow throughout the fiscal year and a significant year over year improvement in bottom line results," said Chris Gorog, chairman and CEO said in a statement. "Yesterday Napster launched the world's largest MP3 store, substantially expanding our available marketplace as tracks purchased at Napster are now compatible with virtually any MP3 player or music phone in the world including the popular iPod and iPhone. We believe Napster's music offerings are now the most comprehensive and easy to use in the industry, providing music fans with the option to enjoy unlimited streaming, portable subscription, a broad array of mobile offerings and now the premiere MP3 store on the web."
Napster was the pioneer of the digital download, albeit originally with an illegal model. Shawn Fanning, who developed his technology while at university, founded the company, launched in June 1999.
Metallica sued the company after it was discovered that their demos were circulating on the network. Dr. Dre took similar action soon after. However, Radiohead took the opposite approach and used the network to promote their 2000 album 'Kid A'. It debuted at number one in America.
After action from the RIAA (Recording Industry Association of America), Napster was shutdown in 2001 and shortly after, was resurrected as a legit company by the Bertelsmann group (BMG).
The company crawled back from bankruptcy to its high position this week.
Napster has a current market cap of $77.74 million. The share price closed 3.68% today on $1.69.
