“Napster Inc., a provider of an online music subscription service, on Thursday raised revenue guidance for its fourth quarter ending March 31 to about $15 million from prior estimates of $14 million, citing robust growth in subscription service,” The Associated Press Reports. “Analysts surveyed by Thomson First Call are looking for the company to post quarterly sales of $14.05 million.”
MacDailyNews Note: Napster’s revenue forecast comes a day after Apple Computer said more than 300 million songs have been sold through its iTunes Music Store.
AP reports, “Chris Gorog, Napster chairman and CEO, said, ‘Since the launch of Napster To Go, we have experienced exceptional demand for all aspects of our business. Our new marketing campaign is already delivering strong returns by generating unprecedented interest in both our regular and portable music subscription offerings. A positive reception to compatible MP3 players from iriver, Creative and Dell is also fueling demand.'”
Full article here.
MacDailyNews Take: Quarterly sales of about $15 million? That’s all? Apple currently does $15 million in iTunes Music Store sales every 11 days. Could Apple flip on their iPod-compatible iTunes subscription switch at any time if Napster does all of Apple’s work for them and proves enough people want that option? What do you think?
[Thanks to MDN reader “jakee” for forwarding us the link to this article. A reminder: if you see a story you think should be on MDN, please use our Contact page to send the link and let us know.]
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Apple CEO Steve Jobs warns record industry of Napster To Go’s security gap – February 16, 2005
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Napster-To-Go’s ‘rental music’ DRM circumvented – February 14, 2005