Feeds

Napster ups revenue forecast

Subscriber growth

  • alert
  • submit to reddit

Boost IT visibility and business value

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
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
Judge nixes HP deal for director amnesty after $8.8bn Autonomy snafu
Lawyers will have to earn their keep the hard way, says court
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
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.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.