City news now, and digital-music-back-end-supplier-thingy Loudeye, the US company who now own OD2, one of the main UK download providers, faces being delisted from the Nasdaq share index, which means nothing to me but will apparently be a cause of concern for the company's shareholders.
The threat of delisting comes after the company's share price spent more than 30 days below one dollar (it is currently sitting at 75 cents, up from a recent low of 67 cents). The slump in share price followed the revelation that the company had made a net loss of $7.5 million in its first quarter on revenues of $6 million. Apparently Loudeye bosses have told key shareholders how they plan to get their share price back above a dollar (they have 180 days to do it), and also what their contingency plan is should they get delisted (hide?).
Since acquiring OD2, Loudeye have become the backend suppliers behind a number of UK download platforms including those operated by CD Wow, Gizmondo Music, My Coke Music, MSN Music Club, Wanadoo, Packard Bell, Tiscali, Ministry Of Sound, MTV, NTL, Blueyonder, GWR and the Oxfam supporting Bignoisemusic.com.
However Loudeye's UK clients will soon be facing two big new competitors - HMV and Virgin's download platforms, both due to launch at the end of the Summer. Both HMV and the Virgin Group have, until now, used the Loudeye system for their limited download services, but both will be using Loudeye rivals MusicNet for their full on digital music platforms, which can't be helping Loudeye's bid to dominate the UK market.