Freemium isn’t just killing the services that offer it. It’s also killing those that don’t.
Like Rhapsody, a paid-only service whose financial losses are now ballooning.
The strangest part is that Rhapsody has over 2 million paying subscribers, which apparently doesn’t cut it. There are simply too many music fans unwilling to pay. Just last week, Rhapsody received a $10 million loan, a desperate move that probably won’t burn past this year.
During the past quarter alone, Rhapsody lost $8.9 million, nearly 6 times the losses from the same period in 2014.
Source: RealNetworks SEC filings.