SnoCap Cuts Staff To Sell Out
October 12, 2007 at 2:32 PM (PT)
Online music licensing company SNOCAP has laid off over half of its staff, from 57 employees to 26, and has put itself up for sale.
Co-founded in 2002 by NAPSTER founder SHAWN FANNING, SNOCAP created download stores for artists to place on their websites, enabling them to sell their own music by themselves. It also handles copyright and music licensing for musicians and offers .
SNOCAP CEO RUSTY RUEFF told CNET NEWS.COM that artists were beginning to embrace that, and business was starting to pick up, but it was too little, too late to prevent the staff cutbacks. "You have to understand that it took a lot of work and a lot of capital to bring this capability to market. But it's that time when we are asking ourselves what's next. And we think it's probably best for us to be part of larger entity."
SNOCAP will still provide music stores for MYSPACE members.