Proxy advisors back Napster management

NEW YORK (Reuters) - Digital music company Napster Inc said on Monday two independent proxy advisors concluded that three dissident investors seeking seats on the company's board are unqualified to be elected.

Proxy Governance and Glass Lewis & Co. said the dissidents don't have the appropriate background or experience to help the board address the company's challenges, according to Napster.

The Los Angeles company is struggling to win and retain new customers in the digital music sector, which is dominated by Apple Inc's iTunes Music Store.

The company's struggles prompted Perry Rod, 29; Thomas Sailors, 49 and Kavan Singh, 26; to prepare an independent proxy after their application to Napster's board for nomination was rejected on June 13.

The dissidents have criticized Napster's management strategy, saying executives have been waiting and hoping Apple's dominance in digital music would fade or Internet piracy would reduce.

Napster said in an August 29 letter to stockholders that the three dissidents had "no experience as directors of public companies, meaning they would require on-the-job training."

The company is holding its annual meeting on September 18 in Los Angeles where it hope stockholders will reelect three incumbent independent nominees.

Shares were down 2 cents to $1.32 in early trading on Nasdaq.

(Reporting by Yinka Adegoke; Editing by Derek Caney)