One of the pioneers of streaming, Rhapsody, has unveiled its 2015 financials through RealNetworks who owns a 43 percent stake in the company. The results are mixed and show a dedication to growth over an immediate intent on profits. Losses doubled in 2015 to $35.5 million from the previous year even as its revenue rose 16. 4 percent to $202 million.
Other numbers are a little more worrisome. Its gross profit (revenue minus cost of revenue) stayed essentially the same at $32.8 million from $32.1 million. Other expensive items increased 27.6 percent, which means that its net loss grew 66.3 percent.
The loss could be from the increased competition it faces globally and the need to try and maintain and increase its user base. Also there has been an increased push since Rhapsody first started for higher payouts by streaming services from artists, labels and distributors who are seeing a higher percentage of their profits come from streaming.
The share of Rhapsody's revenue continues to grow outside of the United States and Europe, where other services like Spotify, TIDAL, Deezer and Apple Music are consolidating their foothold on the market. In 2015, its revenue grew to 63 percent from 61 percent the year before.
Rhapsody reportedly has 3.5 million subscribers and does not have a free tier, which has made it harder to gain new users, but easier to remain closer to profitable. It was launched in 2001 and has changed hands with different owners and investors like a $230 million investment from MTV in 2007.
It operates in 32 different territories under the Rhapsody and Napster name, which Rhapsody acquired four years ago and took legit. It has partnered with mobile companies in many of those jurisdictions to offer the service directly on people's phones.
