Rhapsody International, a streaming music company that competes with
The milestone for the Seattle company that owns Rhapsody and
"The growth is really being driven by two things, and that's mobile and international," said Paul Springer, Rhapsody International's chief product officer.
Though the company, founded in 2001, was one of the first to embrace the idea of getting people to pay a monthly fee for on-demand access to music, Rhapsody is well behind Stockholm-based Spotify, which counts 10 million subscribers among its 40 million active users.
Rhapsody's on-demand streaming service costs U.S. users $10 a month.
The company, in an effort to compete directly with Oakland's
Springer did not break out how many people have been using the radio-like version.
The company is trying to gain more users overseas by partnering with mobile carriers. Napster, which Rhapsody bought in 2011, serves as its international brand.
Rhapsody said on Monday that its will make the radio offering available to customers in France through its partnership with French carrier SFR. Through its deal with
Smart phone companies hope to use music services as a way to entice more users, Springer said.
"Smart phone penetration is lower in Latin America," Springer said. "What we hear from our mobile partners is, they need services to try to spur that adoption, and music is one of them."
The expansion through mobile carrier deals is a welcome sign for a company that went through a major transition last year. In September 2013, the firm laid off about 15% of its workforce alongside the exit of chief executive Jon Irwin.
The increase in subscriptions may help the company pare its losses.
Though Rhapsody is closely held, it is 45% owned by the publicly traded technology company
RealNetworks will report second-quarter results on July 30.