So why again did Snocap, the P2P filtering company that changed its business model to sell MP3s via Myspace, fire 60 percent of its workforce a week ago? Maybe because they didn't sell any MP3s. CD Baby founder Derek Sivers has a long post about his company's relationship with Snocap on that really puts things into perspective:

"Then the sales reports came in. $12,000 total sales for the 8 months they'd been active. Since we keep a 9% cut, that's $1080 for us, total. Ouch. As a curiosity, I quietly enabled MP3 sales on, without telling anyone. A "buy MP3" button showing up next to the "buy CD" button. In 3 weeks, with no announcements, we sold over $110,000 in downloads. Hm. "

Snocap was founded by Napster inventor Shawn Fanning and originally wanted to assist P2P vendors to offer filtered and licensed platforms. One of the companies that relied on this was Mashboxx, the P2P venture of Grokster founder Wayne Rosso. I wonder what is gonna happen to that beta test now ...

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