Napster has boosted its fourth-quarter revenue estimate based on the expected popularity of its new Napster To Go subscription service.

The company says it expects to take $15 million revenue in the three-months up to March 31. Analysts polled by Thomson First Cal had predicted $14.1 million revenue for that period, reports Associated Press.

The news caused Napster's shares to climb 47 cents – 6.9 per cent. It closed at $7.27.

Napster chairman and CEO Chris Gorog said: "Since the launch of Napster To Go, we have experienced exceptional demand for all aspects of our business."

The Napster To Go service requires music fans to pay a monthly subscription to rent music, rather than paying on a per track basis but being able to keep the music for life. The company is convinced that its method of music non-ownership will be more popular than Apple's method where customers do own the music.

Others attack

Creative is also brandishing its weapons at Apple. The company has dropped the prices of its Zen Micro MP3 players to match those of Apple's iPods.

The company has also updated the colouring of its range, just as Apple did with the iPod mini.

Creative chairman and CEO Sim Wong Hoo told MP3 Newswire: "We offer the Zen Micro in 10 different colours, giving consumers a wide range of choices, from red, light or dark blue, orange or green, to pink, purple, silver, black and white."

Apple's share price fell $2.33, or 5.3 per cent last night to close at $41.79.