Roxio today raised its fourth quarter 2004 revenue guidance citing strong demand for its music service and software products.

The company revealed it expects its Napster division to see $5.5 million revenues – up from $3.6 in the third quarter. The company's software revenues are also expected to climb, from $15.2 million in Q3 to $26 million in the current quarter.

Napster CEO Chris Gorog said: "Given that the online music market is just beginning to develop, we expect to see continued sequential growth from this division as increasing numbers of consumers" use online music services.