Napster has produced a mixed bag with its new set of results. Subscriber numbers are up (US only) to 402,000, a rise of 42,000 in three months but losses have grown from $2.6 million to $19.9 million. The good news is that Yahoo’s arrival into the music space is growing the overall market rather than eating into competitors’ share. The not so good news is that despite brand recognition, it’s not making up ground on Rhapsody in terms of subscriber numbers and with 82% of revenues coming from those subscribers, it’s nowhere near even starting to make up ground on Apple’s iTunes, which recently passed half a billion downloads worldwide.

“Napster continues to make strong progress as we recorded our fifth consecutive quarter of double-digit revenue growth and signed significant strategic partnerships with some of the world’s leading technology companies including XM Satellite Radio, Ericsson and Dell,” said Chris Gorog, Napster’s chairman and CEO.

Napster has yet to announce any figures for its UK service.

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