Feeds

Napster ups revenue forecast

Subscriber growth

  • alert
  • submit to reddit

Build a business case: developing custom apps

Napster expects to report revenues of $15m for the current quarter, $1m more than it previously forecast, the company said today.

The digital music company attributed the gain to "exceptional demand" for its subscription services, in particular Napster To Go, during the fourth quarter, which ends 31 March 2005.

We'd hope there was some increase in demand given the amount the company is paying to encourage this "robust growth". It has committed itself to spending $30m to promote NTG, its most profitable offering.

NTG allows subscribers to download any number of tracks and copy them to a portable music player. The service costs $15 a month. Napster's 'standard' $10 subscription service simply provides unlimited downloads - transferring tracks to a portable device costs extra.

With either package, should you stop paying the subscription, the songs stop playing.

Company chairman and CEO Chris Gorog also pointed to the contribution of compatible-player makers, in particular South Korea's iRiver, which recently ran an promotion in partnership with Napster. Windows Media-supporting hardware vendors and music providers are increasingly looking to build such relationships the better to compete not only with other firms in the Windows Media market, but with the more tightly integrated Apple iTunes Music Store-iPod offer.

Apple this week said some 300m songs have been bought through ITMS.

Napster lost $16.4m during Q3 FY2005 on revenues of $12.1m, but it took its subscriber base to 270,000 during Q4 calender 2004, up 90,000 on Q3 2004's total. ®

Related stories

Apple music store downloads top 300m
Napster To Go DRM 'threat' astounds media
Napster does the maths
Why Napster will be a fully-integrated flop
Napster subscriber tally hits 270,000

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.