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Napster Increases in Popularity
May 14, 2005


Napster’s Q4 revenue rises 188% from a year ago

Net revenue at Napster Inc. rose 188% to $17.4 million for the fourth quarter ended March 31, as full-year revenue rose nearly fourfold to $46.7 million from $12 million, the provider of digital music services said.

Napster’s revenue figures refer only to its continuing operations, comprised of its digital music services and related products but excluding its music software business, which it sold in December. Napster formerly operated as Roxio Inc.

Napster said net loss from continuing operations for the year ended March 31 widened to $51.4 million from $46.4 million in the prior year. It said sales and marketing expenses more then doubled to $39.2 million for the year ended March 31, from $12 million the prior year.

Napster said as of March 31 it had 412,000 subscribers.



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