Loudeye makes news almost weekly these days, and more often than not the news is bad. Today, the Seattle digital music company said it's losing a key customer.

All of Loudeye's encoding services revenue comes from a deal where it delivers EMI Music content to digital music providers. For last year, that revenue was $3.9 million, or 14 percent of Loudeye's total revenue.
Loudeye said in a filing today that EMI Music is planning to take its encoding business to a new, unidentified company in the second quarter of 2006. But even with the loss, Loudeye said it's not changing its revenue estimates for the first quarter or full year 2006.

In a separate, but perhaps related, announcement, Microsoft said last month it is helping EMI Music develop a technolgoy platform for its operations.

So far, today's news hasn't made much of a dent on Loudeye's stock price.