It's battling insurers that are refusing to pay litigation-related claims covered under MP3.com's policies. And it faces copyright lawsuits from a few indie labels. MP3.com (MPPP
) set aside $170 million to cover legal damages, but setbacks could threaten its remaining $98.8 million cash cushion.NEW REVENUES NEEDED
MP3.com must generate revenue streams beyond online advertising. It just started charging monthly fees beginning at $4.99 for classical and children's music services. It also charges yearly fees for access to songs from major labels. If the new businesses aren't hits, MP3.com will have a hard time making a profit.STIFFER COMPETITION
Bertelsmann is allied with Napster, and Sony (SNE
) and Universal are planning a joint site. MP3.com says it can be a third-party marketing resource for all labels. But it needs to find allies with deep pockets.