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Former Napster founder isn't making much money in music licensing

Written by Rich Fiscus (Google+) @ 13 Oct 2007 19:29 User comments (6)

Former Napster founder isn't making much money in music licensing Music licensing firm Snocap cut it's staff by 60% according to a company spokeswoman. Snocap is best known for being co-owned by Napster founder Shawn Fanning.
Although Fanning's Napster connection netted the company a lot of free publicity initially, other companies, particularly Apple's iTunes, have performed much more impressively, and file sharing technology has progressed far beyond Napster's failed model. Now Snocap is laying off employees and up for sale. "Snocap has received interest from several companies and is pursuing that," said Susan Celia Swan, a company representative.

Last year Snocap inked what appeared to be a lucrative licensing deal with MySpace. Under the agreement, Snocap allows any band to license music for MySpace sites using a service called MyStores. Snocap deducts a small fee from royalty payments and splits it with MySpace. Despite the mind bogglingly large MySpace subscriber base, they company has attracted fewer than 200,000 potential customers for music from over 80,000 artists.

Although the company's MyTunes site had nearly 20 million unique visitors in September, theu haven't made any public statement regarding sales figures.

Source: CNet News

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6 user comments

114.10.2007 5:15

you would think they would be making plenty of money...

214.10.2007 11:38

hes not a middle man,not part of the media mafia but a servant of it like the artists,thus like the artists they are "poor" compared to the middle man.

314.10.2007 19:12

That's unfortunate! Even a tie-in with MySpace won't cut it? Apple needs some serious competition!

420.10.2007 0:13

Bring back the ORIGINAL Naspter. Those were the days. LOL

523.10.2007 6:45

Well this is because the market place is drowned with all different companies that are doing this at the moment. Napster has to realize that its has been over taken in the market by itunes of all people apple do have a great lead in the market place and they have the biggest market share.

623.10.2007 6:51

Originally posted by borhan9:
Well this is because the market place is drowned with all different companies that are doing this at the moment. Napster has to realize that its has been over taken in the market by itunes of all people apple do have a great lead in the market place and they have the biggest market share.
He's not selling enough souls to the media machine for profit :X

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