Napster subscriber count rises

Napster didn't get as many subscribers as it had hoped from its purchase of the customer base of AOL Music Now, but still got a big boost.

Digital musicstore said Tuesday that of the approximately 350,000 subs AOL had when the two companies made their deal in January, 225,000 opted to switch over to Napster.

Netco had agreed to pay AOL $15.6 million if all subs came over. As a result of the shortfall, payment will be reduced, though Napster hasn't yet disclosed the exact amount.

Combined with the 40,000 net subs Napster added on its own in the quarter ending March 31, that brings its total number of paid monthly subscribers up to 830,000. Company claims that's more than Rhapsody, its biggest competitor in the online music subscription biz.

Rhapsody parent company, RealNetworks doesn't break out exact sub numbers for that service from its other music offerings, making the claim impossible to judge.

Revenue was about even with the previous quarter at over $28 million. Napster will disclose full financial results in May.

Shares in Napster were up 4% at $4.30 Tuesday on the news.
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