Napster to tune in to MP3

Napster Inc., the pioneer of digital music said on Sunday that in the coming spring it will convert its entire music downloads to MP3 format. All single tracks and albums will be made available exclusively in MP3 format, said the company in a press release.

On purchasing the company’s music subscription, one can download tracks that will be covered under copyright laws.

"As there is now a critical mass of support for MP3s we are very pleased to announce we will soon offer our customers the user-friendly MP3 file format throughout our product line-up and provide the top-tier content our users expect from Napster,” said Chris Gorog, Napster's chairman and chief executive.

The advantage of MP3 format is that such music is compatible with a variety of portable music devices including the Apple iPod, Microsoft Zune and other music players and mobiles.

"The ubiquity and cross-platform compatibility of MP3s should create a more level playing field for music services and hardware providers and result in greater ease of use and broader adoption of digital music," said Mr.Gorog.

Napster had recently told subscribers that it will raise basic subscription from $9.95 to $12.95 a month with effect from Jan. 30. If the Existing subscribers pay for a full year in advance, they would be allowed to lock in the lower monthly fee.

For its top subscription tier Napster kept the monthly fee at $14.95.

The company had managed to narrow its loss in the second quarter, which ended Sept. 30, to $5.1 million, from $9 million in the same period a year earlier, it said in November.
By the end of the quarter Napster boasted of 750,000 paid subscribers.
Shares of Napster closed at $1.94 on Friday.