Streaming platform Rhapsody, which operates as Napster outside the US, lost an average of $3m per month last year – with an annual net loss of $35.5m.
The figures were revealed in the annual filings of Rhapsody shareholder RealNetworks this week, which owns owned approximately 43% of the business’s stock.
Rhapsody posted $201.9 million in revenue in 2015 – a new record and 16% higher than 2014’s revenues.
However, losses widened considerably on the $21.3m loss posted in 2014.
The $35.5m loss equates to an average monthly net loss last year of $2.96 million.
Rdio, which went bust late last year owing Sony Music $2.4m, was losing around $2m a month before filing for bankruptcy.
RealNetworks recorded a share of losses of Rhapsody of $14.5 million in 2015 – an increase on the $4.5 million loss it accrued in 2014.
In March 2015, RealNetworks extended a $5.0 million loan to Rhapsody, ‘as did the other 43% owner of Rhapsody’.
The loans had original maturity dates of June 2018, or earlier, if Rhapsody’s certain loan to an external strategic partner was repaid.
Napster expanded into Canada in November last year.
A month later, Rhapsody confirmed that it was on the verge of 3.5m paying subscribers worldwide.
Music Business Worldwide
