Napster saw deepening losses in its first quarter, which ended June 30, 2005.

The company's after-tax $19.9 million loss was mitigated somewhat by its climbing revenue, which reached $21 million, 167 per cent higher than the year-ago quarter.

Napster chairman and CEO Chris Gorog stressed the positive news: "Napster continues to make strong progress as we recorded our fifth consecutive quarter of double-digit revenue growth."

'Beyond the PC'

Gorog pointed to partnerships his company is putting in place toward a general strategy of enabling users to, "access Napster beyond the PC through an increasing number of MP3 players and via cell phones."

Napster also revealed a joint venture to launch Napster Japan with Tower Records Japan within the next 12 months.

Subscriptions up

The company also claimed the number of paid subscribers to its services, "excluding university subscribers on summer break", grew by 13 per cent, quarter-on-quarter. It now boasts 402,000 subscribers.

Looking forward, Napster expects to report revenue in the range of $21 million to $23 million.

"We look forward to announcing a number of new strategic initiatives later this calendar year designed to create new revenue streams, improve margins and accelerate our path to profitability," promised Gorog.