Los Angeles - Digital music service Napster (NASD: NAPS) this week reported a narrower loss in its fiscal second quarter, while revenue grew by 24% to $31.6 million.

The company reported a net loss of $5.1 million, compared with a loss of $9 million in the same period a year ago.

Napster also said it lost 20,000 subscribers to its digital music services during the quarter; the company now counts a total of 750,000 paying customers.

But, touting recent deals like an agreement to power a mobile music service for AT&T, and uptake of its Napster To Go service for portable players, the company said it expects to report revenue of around $33 million in its third quarter.

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