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Napster to enter wireless arena

Digital music service provider Napster announced plans Thursday to offer ringtones to mobile users in the United States and Canada.

Napster Mobile, which will launch next year, will allow users to download ringtones from the company’s digital music catalog via a mobile version of Napster’s PC-based interface. Users who buy mobile content from Napster will receive promotional offers for PC downloads and subscription service through the company’s traditional computer service.

Dwango Wireless, a mobile content delivery company, will partner with Napster on the service. Dwango, which also has agreements with ESPN and Rolling Stone, made news last week when it announced a deal to bring content from Playboy to handsets in North America.

“We are thrilled to partner with (Napster) for several new distribution approaches, including access to Napster’s community,” said Alexander Conrad, Dwango’s president and chief operations officer.

The announcement comes one day after American Technology Research analyst Paul-Jon McNealy downgraded Napster parent Roxio Inc. from “sell” to “hold,” saying the stock had unreasonably high expectations. Roxio is not likely to turn a profit next year, McNealy said, and Napster’s revenue estimates won’t be enough to shore up Roxio’s losses.

Once an online forum for users to share music files free, Napster now charges a $15 monthly subscription fee for its service.

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