Napster Seeks Salvation In Phones People Don’t Want

Yesterday we reported on the popularity of the use of phones for gaming and that the number of recent number of downloads for games on the British Orange network was higher than tones, music tracks and music videos put together. It seems that people prefer to use their phones for gaming than music. So, remembering this, we noticed this piece of news where Napster has told investors that their future is dependent on mobile phones that play music. SmallCapInvestor reports:

Napster, Inc. (Nasdaq: NAPS), the formerly notorious music-sharing company that now bills itself as “the most popular on-demand music subscription service in the world,” is positioning itself to become the leading content provider for music-enabled cell phones, CEO William Gorog said in a conference call after the close of Wednesday’s trading.

“We have never had greater excitement,” Gorog said on the call… [and] forecasted an industry shift from standalone MP3 players to music-enabled cell phones. “In 2008, music-enabled cell phones will easily eclipse sales of MP3 players,” Gorog said. “In the near future, most consumers will own a portable device that is compatible with Napster.”

Napster will post a loss of $7m this quarter.

SmallCapInvestor.com: Napster says music cell phones will save company