Napster says third quarter revenues increased 21% to $28.4 million while net loss for the period was cut to $9.5 million, down from a net loss of $17 million a year ago.

The company recently reported that its subscribers downloaded 500 million songs and streamed over 700 million tracks in calendar 2006. Napster's worldwide subscriber count increased 48,000 to 566,000 as of December 31, 2006. That figure includes university users and subscribers to the recently launched Napster Japan. Shares in Napster closed up 11 cents at $4.09.