March 3, 2005 8:00 AM PST

Napster raises revenue guidance

Napster expects to end its fiscal fourth quarter with more revenue than it had previously forecast, the company said Thursday.

The company now predicts that revenue in the quarter ending March 31 will be around $15 million, which is $1 million higher than it had projected earlier.


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Napster said the higher guidance is the result of "robust growth" in its regular and portable music subscriptions. Napster said that demand has been fueled by compatible MP3 players from Iriver, Creative and Dell. The company also cited a recently launched ad campaign for Napster to Go, its portable service.

Napster to Go offers access to an unlimited amount of music per month for $14.99. Subscribers can play the music on compatible MP3 players, but songs can be played only as long as the person keeps paying the fee. The rental model was designed to take on market leader iTunes, from Apple Computer.

"Since the launch of Napster To Go, we have experienced exceptional demand for all aspects of our business," CEO Chris Gorog said in a release. "We are confident that interest in our portable subscription service will further increase as consumers learn that for about the price of one CD per month, they have unlimited ability to fill and refill their MP3 players with their choice of more than 1 million songs."

4 comments

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Napster Earnings Surge
The hack to Janus copy prevention was announced just days
after Napster's opening. Geeks have started to sign up for the
"free trial" to Napster in droves.

In announcing a million dollar jump to projected sales for the
first quarter, Napster fails to note that the vast majority of these
subscriptions will not be renewed into paying subscriptions.

They will simply be dropped as the downloaders strip the Janus
DRM provided by Microsoft and keep the songs they downloaded
forever without paying Napster a dime.
Posted by Aphelion (8 comments )
Reply Link Flag
Napster Earnings Surge
The hack to Janus copy prevention was announced just days
after Napster's opening. Geeks have started to sign up for the
"free trial" to Napster in droves.

In announcing a million dollar jump to projected sales for the
first quarter, Napster fails to note that the vast majority of these
subscriptions will not be renewed into paying subscriptions.

They will simply be dropped as the downloaders strip the Janus
DRM provided by Microsoft and keep the songs they downloaded
forever without paying Napster a dime.
Posted by Aphelion (8 comments )
Reply Link Flag
Take their boasts with a grain of salt
NAPSTER ripped me off and continue to bill me despite my cancelling the service. I had to go to my credit card company and tell them the charges are fraudulent and complain to the BBB and the Attorney General and still havent gotten a refund on a cancelled account which they kept charging and will probably try again. They will even change software forcing you to install new software before you can get in to retry your cancellation of their service. DONT USE NAPSTER they a scammers and con artists out to leach charges on your card!

I know they still wont talk to me. Their customer service people just hang up on you when you call and ask to talk to a supervisor.

You were warned! This is a very dubious investment in my opinion!
Posted by bubeard (106 comments )
Reply Link Flag
Take their boasts with a grain of salt
NAPSTER ripped me off and continue to bill me despite my cancelling the service. I had to go to my credit card company and tell them the charges are fraudulent and complain to the BBB and the Attorney General and still havent gotten a refund on a cancelled account which they kept charging and will probably try again. They will even change software forcing you to install new software before you can get in to retry your cancellation of their service. DONT USE NAPSTER they a scammers and con artists out to leach charges on your card!

I know they still wont talk to me. Their customer service people just hang up on you when you call and ask to talk to a supervisor.

You were warned! This is a very dubious investment in my opinion!
Posted by bubeard (106 comments )
Reply Link Flag
 

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