Napster, the brand that once sent the music industry into panic mode but then faded, was just acquired for $207 million.
Infinite Reality is buying the streaming service to transform it into a platform where fans can hang out in virtual spaces, attend concerts, and buy merch directly from artists, the virtual reality startup announced.
The deal is also the highest price tag yet for Napster, which has circulatedamong half a dozen companies, including Rovio to Algorand, since its controversial file-sharing days. Infinite Reality is betting big that music fans want more than just passive listening.
“By acquiring Napster, we’re paving a path to a brighter future for artists, fans, and the music industry at large,” John Acunto, Co-Founder and CEO of Infinite Reality, said in an official statement. “We’re creating the ultimate music platform where artists can thrive in the next wave of digital disruption.”
Current Napster CEO Jon Vlassopulos is staying on and expanding his role. Before joining Napster in 2022, he headed music at Roblox where he pioneered virtual concerts that reached millions of fans.
“Napster revolutionized digital music in the nineties, and now, with Infinite Reality, we’re ready to do it again,” Vlassopulos said. “The internet has evolved from desktop to mobile, from mobile to social, and now we are entering the immersive era. Yet, music streaming has remained largely the same. It’s time to reimagine what’s possible.”
Napster’s journey from dorm room disruptor to corporate asset spans over two decades. Founded by Shawn Fanning and Sean Parker in 1999, the original service let users freely share MP3s before legal battles with record labels and artists like Metallica shut it down in 2001.
Since then, the brand has bounced between owners—Roxio in 2003, Best Buy in 2008, then Rhapsody in 2011. VR company MelodyVR bought it for $70 million in 2020, followed by blockchain firm Algorand in 2022.
This shift to Web3 revived the company, which started working on its own $NAPSTER token and made some acquisitions to promote a decentralized music service. “The hope is that we can bring this innovation to the mainstream and get consumers—regular fans—just doing it,” Napster CEO Jon Vlassopulos told Decrypt in a 2023 interview. “So it’s almost going back to that [point] where you had collectible downloads that were scarce, and it just wasn’t on-chain.”
Today’s Napster is a fully licensed streaming service with 110 million tracks available in 34 countries. The company claims it has paid artists and songwriters over $1 billion.
Infinite Reality plans to build 3D virtual spaces where fans can experience concerts, join listening parties, and interact with artists. The platform will also sell physical and digital merchandise, offer exclusive content, and distribute event tickets directly.
“Imagine stepping into a virtual venue to watch an exclusive show with friends, chat with your favorite artist in their own virtual hangout as they drop their new single,” Vlassopulos explained in the company’s statement.
Infinite Reality will connect Napster with its other entertainment properties, including the Drone Racing League and esports teams competing in games like Call of Duty. This cross-promotion could help artists reach younger, gaming-focused audiences.
“We can think of no better use case for our technology than putting it in the hands of music artists who are constantly pushing the boundaries of what’s possible,” said Amish Shah, chief business officer of Infinite Reality.
Whether this latest reinvention finally gives Napster a sustainable future remains to be seen. Previous attempts to revitalize the service have yielded mixed results, and metaverse-style music experiences haven’t exactly gone mainstream.
The acquisition is expected to close in the coming weeks, with new features rolling out in the future as Infinite Reality “evolves the brand even further.”
Edited by James Rubin
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Source: https://decrypt.co/311531/napster-snapped-up-for-207-million-to-build-music-metaverse
