Napster will enter the lucrative ringtone market, the company confirmed last night.

The company has formed an agreement with mobile developer and publisher Dwango Wireless to launch the service - Napster Mobile - across the US and Canada in 2005. The service will use a specially-designed Napster interface.

"We are excited to be working with Dwango to bring the Napster brand into the innovative and very fast growing ringtone business," said Chris Gorog, Napster's chairman and CEO, "Napster Mobile will enhance our development of wireless delivery."

Alexander Conrad, president and COO of Dwango Wireless anticipates the deal "will make a major impact on the mobile entertainment industry".