Roxio shares surged 25 per cent yesterday following the announcement of a partnership with Samsung.
Samsung and Roxio are developing dual-branded portable audio players to be used in conjunction with Roxio's Napster 2.0 digital-music distribution service. As a result, Roxio's shares which rose $2.09 to $10.46.
Scott Marx, Roxio's head of corporate communications for Europe, Middle East and Africa, said: "Samsung is a world leader in consumer electronics devices, and has a strong synergy with Roxio. The partnership is the first glimpse of how Roxio is taking Napster beyond the PC into the digital lifestyle."
The strategy is similar to Apple's approach to the digital-music market, where the iPod complements iTunes Music Store.
Adams Harkness and Hill analyst Steven Frankel told Dow Jones News: "It's a very easy link between purchasing the music player and using Napster, but it’s too soon to tell if the deal will attract music fans to Napster."
The Samsung-Napster hard disk drive-based MP3 player will be introduced later this year. The Napster 2.0 service, expected to see a US launch by Christmas, will allow music fans to purchase and download music from a catalogue of 500,000 songs, according to Roxio.
Marx said the MP3 player will be available in the UK “next year following the international role out of the Napster 2 service".