Napster-reviver Roxio ( ROXI) is headed toward the download-and-burn path for its online music business, though it hasn't quite forsaken the subscription music model it just bought into.

Roxio -- which owns the name of the defunct file-sharing service, and which bought the Pressplay subscription music service earlier this week -- indicated on a Wednesday night conference call it was taking several measures to increase flexibility regarding how consumers could listen to music they will obtain through the Pressplay service, which Roxio plans to relaunch under the Napster brand within a year.

But Roxio CEO Chris Gorog said the company hadn't yet decided yet whether the company would launch a per-song sale business, either as an addition to the current subscription model or as an alternative. Pressplay already permits users to download single tracks for burning onto a recordable CD or transfer to a portable MP3 listening device, but only after paying a $9.95-a-month subscription fee.

These comments came as Roxio reported a strong quarter but a weak near-term outlook for its current digital media software business and insisted the time was right for Roxio to diversify and take advantage of "enormous" opportunity in the online music business.

Between now and the Pressplay-as-Napster relaunch, Gorog said the company would be making "significant enhancements" to Pressplay's ease of use, such as enabling seamless CD burning and offloading to MP3 devices. Gorog said the company already obtained important concessions regarding user flexibility from record labels in the course of its negotiation to buy Pressplay, launched in 2001 as a partnership of Sony ( SNE) and Vivendi Universal ( V).

Meanwhile, Gorog said the company had seen a decline in software sales in recent weeks, attributable to several factors: A normal falloff following the release of the company's Easy CD & DVD Creator 6, an expected decline in sales to companies packaging its software with their hardware, soft consumer spending at retail, and increased competition from software tailored for the copying of DVD movies -- an area Gorog says it's "imprudent" for Roxio to enter because of legal issues.

Roxio's shares fell 75 cents Wednesday to close at $7.26. They traded 17 cents lower in after hours trading following the release of quarterly financial results.

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