The use of DRMs however, has not proven to be popular with users as only specific players are compatible with this technology the report continues. The company was sued by and eventually closed by the music industry in 2001 for promoting an illegal free music file sharing service.

The site has 750,000 subscribers who use download services and music subscriptions. Chris Gorog, CEO of Napster was quoted by Reuters to say “We projected a year ago that there would be a critical mass of support for MP3, and we’re pleased to see the music industry is beginning to support it. There’s now enough top-tier content out there. There’s little question that the broad adoption of MP3s will provide an uplift for the industry.”