Reading through the transcript of the Napster FY3Q06 earnings call at the Internet Stock Blog, a few things caught my eye.
– Chairman and CEO Chris Gorog admits there aren’t reliable third-party metrics metrics for comparison but says the company’s internal data shows Napster at number one or a very strong number two in premium subscription and “a clear number two” in download sales.
– Gorog: “We believe the year-over-year premium subscriber growth of 110% clearly validates our strategy to focus on a subscription model. And is even more impressive when considering the device challenges consumers have to sort through during these early days. We remain 100% convinced that the unlimited access model will dominate the future of the music business and that we will continue to benefit as one of its leading pioneers.”
– The rundown of progrss in the XM+ Napster relationship doesn’t yet include results. Devices that enable XM listeners to tag songs for download from Napster are just rolling out.
– Napster Germany, which launched in December, is the fastest-growing of Napster’s international efforts aided by exclusive bundling with the leading MP3 player, Trekstor, and a relationship with major retailer MakroMart.
– About 70 devices are enabled for Napster U.S. Gorog: “We believe that is just a matter of time before the WMA devices begun to make their mark in the marketplace. And WMA MP3 player enabled cell phones may ultimately prove to be a very significant threat to iPod’s current dominance.”
– Very vague on napster.com. Pressed a little in q&a he said the site currently gets 2-3 million monthly uniques. Pressed for more, no color on launch citing competitive concerns,
– Gorog used his formal remarks to warn people off information that doesn’t come directly from the company: “… in this new era of instant Internet journalism we have found that the veracity of what is reported is let’s just say not what it used to be.”
– He said the company has made no effort to be sold and continues to evaluate inquiries.
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