Napster struggling in music service race

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Julio Franco

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Despite of the fact Roxio's revamped version of the Napster client is the second most used music download service on the net, it's losing big bucks, up to $15 million in its first two months of operation according to this article at Mercury News.

But in the days leading up to Napster's re-launch in late October, HP suddenly -- and without explanation -- returned Napster's $250,000 check and canceled the agreement to install a link to Napster's online music service on its computers. Worse, in January HP announced a surprise partnership with Napster rival Apple Computer to feature the iTunes Music store on HP computers and sell Hewlett-Packard branded iPod music players.
 
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