Helped by the integration of more than 225,000 AOL Music Now paid subscribers into its service.

The news saw shares of Napster move up more than 7 percent in early trading on Nasdaq.

The Los Angeles-based company said that for the fourth quarter ended March 31, it should report more than $28 million in revenue and more than 830,000 paid subscribers.

In February, Napster said it expected fourth-quarter revenue to exceed $26 million and operating expenses to decline on a sequential basis.

Napster also reported internal growth of 40,000 net paid subscribers during the quarter.
EMI-Apple in deal to sell protection-free music

In January Napster reached a deal to become the exclusive online music subscription service to AOL, the Internet division of Time Warner, and it said the deal would result in record subscriber levels by the end of fiscal 2007.

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