Beleaguered online music firm, Napster, has confirmed stronger-than-anticipated demand for its subscription-based music services.

The company has warned investors that it now expects to report results ahead of previously-stated financial targets for its fourth quarter, which ended 31 March. It expects to reveal over $28 million in revenue and over 830,000 subscribers.

"Napster concludes our fiscal year 2007 with over 830,000 paid subscribers, which we believe makes us the largest on demand music subscription service in the industry with a paid subscriber base that is both larger than Rhapsody, as well as larger than all of the remaining subscription competitors combined," said Chris Gorog, Napster's chairman and CEO.

During the quarter, the company added 225,000 AOL Music Now paid subscribers to its service, as well as signing-up an additional 40,000 customers to its subscription services.

Napster will host a conference call for analysts and investors on Wednesday, 16 May.