Los Angeles - Digital music service Napster (NASD: NAPS) has reported first quarter sales of $30.3 million, down 6% from the same period a year ago, and a slightly wider loss of $4.4 million.

The standout data in the report was a drop of 52,000 subscribers during the 90-day quarter, from 760,000 to 708,000, which can be attributed to a rise in its subscription prices from $9.95 to $12.95 per month.

The company recently introduced MP3 sales, which are expected to boost revenues, along with the expansion of Napster Mobile.

In fact, CEO Chris Gorog said he expects that "Napster Mobile will make the most significant contribution to our growth in fiscal 2009 bolstered by the integration of MP3 sales into our product line-up."

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