Napster Says Results Should Beat Prior Forecast

Online music service Napster said Tuesday its quarterly results should exceed its prior outlook, helped by the integration of more than 225,000 AOL Music Now paid subscribers into its service.

The Los Angeles-based company said that for the fourth quarter, it will likely report more than $28 million in sales and more than 830,000 paid subscribers. In February, Napster said it expected fourth-quarter sales above $26 million. The news prompted the stock to jump on Tuesday.

Napster also reported internal growth of 40,000 net paid subscribers during the quarter.

In January Napster reached a deal to become the exclusive online music subscription service to AOL, the Internet division of Time Warner , and it said the deal would result in record subscriber levels by the end of fiscal 2007.

The company said it believes it is now the largest on-demand music subscription service, overtaking RealNetworks's Rhapsody subscription service.

Napster will report fourth-quarter results on May 16.

Contact U.S. News


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

U.S. Video

  • Discussing economic data moving the markets, with Kenny Polcari, O'Neil Securities; Rob Morgan, Sethi Financial; Jim Lowell, Adviser Investments; and Ralph Segall, Segall Bryant & Hamill.

  • Power House takes a look at Boston, MA, with a focus on the suburb of historical Beacon Hill. P.T. Vineburgh of Charlesgate Realty has the details.

  • LaGuardia airport is now opening one runway in the aftermath of Delta flight 1086, the Boston marathon bombing trial is in its second day, and Interstate 66 in Louisville shuts down due to snow, reports CNBC's Sue Herera.