In its second-largest acquisition, Amazon buys the company for $970 million.
Q1 revenue at Napster increased 167% to $21 million from $12.5 million in Q1 a year ago, the company reports. It was up 21% from $17.4 million in the previous quarter. It was the fifth consecutive quarter of double-digit revenue growth.
Revenue in FY first quarter at digital music service Napster Inc. increased 167% to $21 million from $12.5 million in Q1 a year ago, the company reports. It was up 21% from $17.4 million in the previous quarter. It was the fifth consecutive quarter of double-digit revenue growth. Net loss grew worse, though, reaching $19.9 million for the first quarter compared to net loss of $7.6 million a year earlier.
In the quarter, Napster’s paid subscribers, excluding, the company points out, university subscribers on summer break, grew by 13% from the previous and almost 300% from Q1 last year. Napster total paid subscribers, excluding university subscribers, grew from 356,000 to 402,000 during the period.
For Q2 of fiscal 2006, Napster says it expects revenue of $21 million to $23 million. "We are projecting modest growth in the September quarter based on the soft summer Internet usage patterns we experienced last year. While we are not providing specific guidance past the September quarter, we do expect to accelerate growth in the second half of our fiscal year based on the availability of a large number of new Napster-compatible MP3 players, the launch of our XM + Napster service and overall consumer spending patterns in the holiday period and beyond,” said Chris Gorog, chairman and CEO.