ARTISTdirect`s revenue grew 111% in 2000 over 1999
Music site ARTISTdirect Inc. today announced net revenue of $6 million for the quarter ended December 31, 2000, a 57% increase over $3.8 million in 1999`s fourth quarter. Net loss for the quarter was $17.0 million, compared with a net loss of $23.6 million for the fourth quarter of 1999. For the fiscal year ended December 31, 2000, net revenue increased 111% to $21.7 million, compared with $10.3 million for 1999. Net loss for 2000 was $59.3 million, compared with a net loss of $57.8 million for 1999.
Revenue from e-commerce in the fourth quarter increased 141% to $4.3 million from the same period in 1999 and increased 31% from the third quarter of 2000. For the full year 2000, e-commerce revenue was $12.2 million, an increase of 130% over 1999. The company said its e-commerce business benefited in the fourth quarter from the sale of exclusive CDs from Cher, the Eels and Staind, as well as exclusive merchandise from *NSYNC, Backstreet Boys, Stevie Nicks, and Ricky Martin. ARTISTdirect also provided fans the opportunity to buy tickets online for the sold-out *NSYNC tour, and offered pre-sale tickets for the Foo Fighters, Marilyn Manson, Offspring, and k.d. lang.
Advertising revenue for the fourth quarter of 2000 was $1.3 million, an increase of approximately 5% over the same period in 1999 and a small increase from $1.2 million for the third quarter of 2000. For the full year 2000, advertising revenue was $6.3 million, an increase of 117% over 1999. The company experienced continued weakness in the overall advertising market, combined with no significant off-line sponsorship activity during the quarter.
"ARTISTdirect maintains a strong cash position, and we have taken aggressive action in reducing our operating costs in an effort to achieve profitability," said Marc Geiger, chairman and CEO of ARTISTdirect Inc. "We believe that ARTISTdirect has the necessary resources -- both in terms of capital and in core capabilities -- to endure the current market volatility as well as the uncertainty in the online music space."
"Consumer demand for digital music is undeniable," said Keith Yokomoto, president and COO for ARTISTdirect Inc. "We expect that consumers will pay for digital music, and ARTISTdirect is uniquely positioned to capitalize in this area through our partnerships with the major labels, our relationship with artists, and our credibility with consumers."
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