Printed from http://www.electronista.com

Napster plans major layoffs after Rhapsody deal

updated 03:05 pm EDT, Tue October 4, 2011

All that could remain from US ops is customer base

Yesterday, Rhapsody announced it was acquiring the US operations of streaming and download music service competitor Napster from Best Buy in a stock swap. Today, more details of the deal have begun to emerge. GigaOM now reports that the merger is expected to lead to major job cuts and that much of Napster's core team will be gone.

According to GigaOM, Rhapsody will close Napster's two offices in Los Angeles and San Diego. Most if not all of its 120 employees will be laid off on December 16. The cat logo used by Napster will no longer be used in the US.

Rhapsody only bought the US side of Napster. For the moment, the Canadian, British, and German operations will continue with business-as-usual. The company, however, has expressed interest in acquiring these businesses from Best Buy as well.

When Best Buy bought Napster in 2008, it had as many as 800,000 subscribers. Since then, its customer base has been eroded by competitors including Apple, to approximately 400,000 customers. It is not clear if Rhapsody will be able to retain these subscribers or they will move over to other download services including iTunes.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

D-Link Wi-Fi Smart Plug

Home automation fans have been getting their fair share of gadgets and accessories in the last few years. Starting with light bulbs, a ...

Razer Kraken Pro headset

Gaming headphones are a challenge to get right, for a long list of reasons that are unique to the consumer buying them. Some shoppers ...

Patriot Aero Wireless Mobile Drive

Regardless of how large a tablet you buy, you always want more space. There's always one more movie or another album you'd cram on, if ...

Sponsor

toggle

Most Commented

 
toggle

Popular News