Blog Post

Earnings: Napster’s Q1 Losses Narrow; Subscribers: 606K

Online music service Napster reported its Q1 numbers today: its net loss was $4.4 million compared with a loss of $24.3 million last year. Revenue rose 54 percent to $26.8 million from $17.4 million in year-ago period.
Napster said it closed the quarter with a paid subscriber base of 606,000, including 59,000 subscribers at universities. Excluding the university subscribers, the company’s premium subscriber base increased 16 percent from prior quarter and 54 percent from year-ago quarter.
Looking ahead, Napster expects revenue to increase to $25 million to $28 million during Q2 as its recent launch of an ad-supported service ramps up amid the typically slower summer season.
TheStreet.com: From the conference call: In the two weeks since Napster.com’s ad-supporter version relaunched, the company has seen its paid download sales rise by 15%, which was encouraging because it is not a lot of time for the “5 free plays” rule to kick in, CEO Chris Gorog said. He also noted that there was no noticeable churn in paid subscribers bailing since the launch of the site.
More info in the release here.