Napster reports record sales; appoints Ross Levinsohn to its Board of Directors

Napster released their quarterly earnings yesterday. Some of the numbers are staggering to me. Net revenue for the quarter at a record $28.4 million, up 21% from the previous year. Overall their was still a net loss at $9.5 million, down from $17 million previous year. They ended the quarter with about $80 million in cash.

"Napster's third quarter delivered record revenue, strong subscriber growth and a dynamic and highly successful launch of Napster Japan," said Chris Gorog, Napster's chairman and chief executive officer. "We are very pleased with our strategic acquisition of AOL's music subscription business, which should increase our subscriber base by more than 50 percent when AOL's subscribers are transitioned to Napster in late March. We also expect a healthy funnel of additional new subscribers as Napster becomes AOL's exclusive music subscription provider going forward. Our partnerships with wireless carriers now give us access to over 140 million consumers and the opportunity to attach to the growing global ecosystem of Windows-based music enabled cell phones. We believe Napster is one of the best-positioned companies in digital music to take advantage of this new phenomenon."

Napster also announced that it has appointed Ross Levinsohn to its Board of Directors. Levinsohn most recently was President of News Corp's Fox Interactive Media.