The company reported that it signed up 143,000 new subscribers during the quarter, representing a 53% increase and bringing the company’s total to over 410,000. Napster is in the middle of a $30 million marketing campaign to push its “Napster to Go” service, which allows subscribers to download tracks to portable players without buying them. The company credits the service and the campaign for driving the subscription increase.
Napster now says its fiscal fourth-quarter revenue will be between $16.5 million and $17.5 million, compared to its previous estimate of $15 million and analysts’ average expectation of $14.6 million. Napster had already revised its revenue outlook upward to $15 million from $14 million on March 3.
Shares in Napster gained 14% in early trading to over $7.00, after closing at $6.17 yesterday.
In other Napster news, the company’s U.K. division has made its first foray into television, inking a deal with U.K. broadcaster Channel 4 for a series of 11 short programs on pop music artists, according to the Financial Times.
The series is set to launch next month, with the debut episode focusing on the band Garbage. Music from the shows is to be made available on the Napster service.
The move is thought to be a preliminary step toward Napster moving into music-video subscriptions, the paper says. Chairman/CEO Chris Gorog has previously said the company would move into video and possibly movie and game subscriptions as a way of building on its music-subscription platform.MUSIC REVENUE TOPPED $17B IN 2023: RIAA
Streaming subscriptions lead the charge. (3/27a)
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THE NEW UMG
Gosh, we hope there are more press releases.
TIKTOK BANNED!
Unless the Senate manages to make this whole thing go away, that is.
THE NEW HUGE COUNTRY ACT
No, not that one.
TRUMP'S CAMPAIGN PLAYLIST
Now 100% unlicensed!
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