Online music service Napster recorded an additional 66,000 users in the quarter to the end of December 2005, bringing its premium subscriber base to more than 500,000.

Chris Gorog, Napster's chairman and chief executive, said that the company had grown its premium subscribers by 110 per cent year on year, and that subscriber revenues "now represent approximately 86 per cent of music revenue".

Net revenue from continuing operations for the third quarter of fiscal 2006 grew to $23.5m, up 94 per cent over the prior year's third quarter and a slight increase from $23.4m in the second quarter of fiscal 2006.

Net loss from continuing operations, before income taxes, was $16.7m for the quarter compared to a net loss from continuing operations, before income taxes, of $13.3m in the second quarter of fiscal 2006 and $14.9m in the third quarter of fiscal 2005.

During the quarter, Napster launched XM+Napster and Napster Germany.

"Going forward in 2006 we will expand our product offerings available at Napster.com including a free experience for music fans which will be supported by advertising," the company said in a statement.