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Mobile phones unlock the future for Napster

Napster CEO Chris Gorog believes his company will benefit from the boom in music phones - largely because he thinks more mobile users will pay for their music on a monthly subscription basis.

"We will go from an available market place of zero to ubiquity," Gorog said in an interview with news agency Reuters . He went on to blame the dominance of the Apple iPod for his company's lack of success.

"The key obstacle to date to moving into mass adoption for the subscription model has been the iPod which has had the very large majority of market share with MP3 players," Gorod said. He described Apple as 'anti-competitive'.

It was announced earlier this month that Napster has signed a deal with AOL to become its exclusive online music provider. The deal will give Napster access to an additional 350,000 customers on top of the 566,000 subscribers it already has.

Napster posted net revenue of $25.5 million dollars for the second quarter of 2006-2007 , but went on to make a net quarterly loss of $9 million. Its third quarter results are due on Friday February 9.

Apple shipped 21 million iPods worldwide in the financial quarter to the end of 2006.