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Last Updated: Wednesday, 3 August 2005, 21:36 GMT 22:36 UK
Japan boost after Napster losses
Napster
'XM + Napster' is seen as a new revenue driver
Online music service Napster has seen heavy first-quarter losses, but is confident of an improving 2005.

The firm posted a net loss of $19.9m (11.2m) compared to $2.6m in 2004, but revenues grew 167% to $21m.

On Wednesday Napster also announced a joint venture with Tower Records Japan to launch its service in Japan.

Looking ahead, Napster said it expected revenues of around $22m in the second quarter, and strong growth in the last half of the year.

'Digital global'

That will be partly driven by another joint venture recently announced with XM Satellite Radio Holdings, it said.

"We look forward to announcing a number of new strategic initiatives later this calendar year designed to create new revenue streams, improve margins and accelerate our path to profitability," said Chris Gorog, Napster's chairman and CEO.

For the three-month period ending on 30 June the number of Napster paid subscribers, excluding university subscribers on summer break, grew by 13% quarter-on-quarter.

And looking to the Japanese deal, Mr Gorog said: "Our partnership with Tower Records Japan represents a significant development in the globalization of the digital music industry and one which will take Napster to a new level."




SEE ALSO:
Napster launches radio song sales
28 Jul 05 |  Entertainment
Downloaders help Napster fortunes
06 Apr 05 |  Entertainment
Norway upholds 'Napster' ruling
28 Jan 05 |  Technology
Napster offers rented music to go
12 Jan 05 |  Technology
Napster creator reveals next step
03 Dec 04 |  Entertainment
Napster offers pre-paid downloads
14 Oct 04 |  Technology


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