Napster’s sales of digital music and related hardware reached $9.3 million for the second quarter ended Sept. 30, a rise of 18% from $7.9 million in the first quarter, parent company Roxio Inc. says.
Napster, originally known as a free music file-sharing service, resurfaced as a paid service last October after it had been acquired by Roxio. Napster has since become the key driver of Roxio’s revenue growth, helping to counter revenue declines in Roxio’s media player software division. The software division’s Q2 revenue fell 15% year-over-year, to $18.12 million from $21.28 million.
Roxio plans to sell off its software division to concentrate on Napster and it will change its corporate name to Napster after a sale is completed as expected within the current fiscal year. Roxio’s total Q2 net revenue rose 22.2% year-over-year to $27.4 million from $22.8 million in the same quarter a year ago. But its total Q2 net loss widened 28.6% year-over-year, to $15.3 million from $11.9 million.
Nonetheless, Chris Gorog, chairman and CEO of Roxio, said total corporate Q2 sales and earnings exceeded expectations.
And with its move to focus entirely on Napster, the company expects revenue to continue growing. It projects Q3 Napster revenue of $11 million, and it has increased its full-year revenue guidance for Napster to $35-$40 million from an earlier guidance of $30-$35 million.
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