Posted by Glen Sears | March 7, 2016 10:22 am | No Comments
Story of the Week
Rhapsody Next Streaming Service to Pair Big Revenue Growth With Big Losses
Like many other streaming services, according to its 2015 financials Rhapsody has conformed to the “bigger revenues/bigger losses” streaming music growth model. The numbers, published by RealNetworks as part of its financial report, show Rhapsody’s revenues rose from $173.5M in 2014 to $202M in 2015 – growth of 16.4%. However, its net losses rose from $21.3M in 2014 to $35.5M in 2015, representing a 66.3% increase year-on-year.
This came as Rhapsody’s subscriber base grew by 45% in 2015, revealed in February in RealNetworks’ last earnings call – the company still holds a 43% stake in Rhapsody. Rhapsody reached 2M subscribers in July 2014 and 3M in July 2015. It’s thus reasonable to suggest that it had around 2.5M at the end of 2014, with 45% growth in 2015 indicating around 3.6M by the end of that year.
With Rhapsody, Spotify, Soundcloud, and others all posting major losses, and their competitors can absorb streaming losses with their income from device sales, advertising and e-commerce…2016 might be the year to talk more about what it means to succeed in streaming long term.
Read the full story on Music Ally.
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Our best wishes for a great week! – MediaNet
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