Shares in Napster gained nearly 14 per cent in late morning trading on Tuesday after the online music distributor raised its quarterly revenue forecast for the second time citing a big jump in subscribers to its 'Napster-to-Go' music service and stronger-than-expected music downloads.

The shares gained 86 cents to $7.12 on the Nasdaq after the company said it adding more than 143,000 subscribers during the quarter and ended March with more than 410,000 subscribers. The quarterly subscriber growth was 53 per cent higher than in the previous period.