2000 eCompany News Bruised by lawsuits, growing competition, and profitability concerns, the online music industry stumbles on the Street. Napster fans have been singing the blues since a judge ruled that the online music site must shut down because of copyright infringements. But they aren't nearly as glum as many other online music company investors. Bruised by lawsuits, growing competition, and profitability concerns, the online music industry hasn't been one of the Street's top performers. But it has yet to come to agreements with Sony and Universal.
Some analysts are skeptical.
The irony is that the record companies could turn out to be some of fiercest competitors in the nascent industry. Indeed, just last week, Universal said it would offer songs in a digital format over the Net on a trial basis. For some, it might be price. Yes, there's opportunity in these low numbers, but remember these companies are trading at depressed levels for a reason. Don't be surprised it they continue to hit the wrong notes regardless of what happens to Napster.