RealNetworks reports that its first quarter digital music revenue increased 18% year-over-year to $34.1 million. The company also added more than one million total music subscribers vs. the same time a year ago, hitting a new high of 2.7 million.

Real's music numbers comprise a number of products including the core Rhapsody on-demand music service; Rhapsody Radio, an Internet radio service that is offered to Comcast broadband subscribers at no additional charge; and mobile music offerings via its newly acquired subsidiary, WiderThan.

Overall Real reported first quarter revenue of $129.5 million, up 50% from the first quarter of 2006. Adjusted net income, rose to $10.4 million up from $3.9 million a year ago.

Shares of Real closed up 7 cents Wednesday at $7.59.