The current incarnation of Napster was launched with great fanfare in late 2003. Since that time, the company's fortunes have ebbed against the onrushing tide of Apple's iTunes Store. It only took four months before the company's president and chief financial officer bailed on the firm and layoffs arrived. Even so, by February 2004, the company had carved the number two position in the music download scene behind Apple, although it has since fallen from that spot.

Since its relaunch, the company has yet to turn a profit and exists on very thin margins. Despite that, Napster CFO Nand Gangwani says the company's finances are in tip-top shape. "Napster has a strong balance sheet with a healthy cash position of $97 million as of the close of the first quarter and we are currently generating annual revenues in excess of $100 million. For the second half of our fiscal year, we project a strong up-tick in subscription growth from a base of more than half a million subscribers and a significant expansion of our mobile business."