Napster, a name that once sent shockwaves through the music industry, only to wane into obscurity, has been purchased for $207 million by Infinite Reality. The virtual reality startup intends to transform the streaming service into an immersive platform that enables fans to interact in virtual spaces, attend concerts, and purchase merchandise directly from their favorite artists.
The acquisition marks the highest price tag ever for Napster, a brand that has changed hands among several companies, including Rovio and Algorand, since its contentious inception as a file-sharing service. Infinite Reality is making a substantial bet on the idea that music fans are ready for an experience that extends beyond passive listening.
“By acquiring Napster, we’re paving a path to a brighter future for artists, fans, and the music industry at large,” stated John Acunto, Co-Founder and CEO of Infinite Reality. “We’re creating the ultimate music platform where artists can thrive in the next wave of digital disruption.”
Jon Vlassopulos, the current Napster CEO, will remain at the helm and expand his role. Prior to joining Napster in 2022, he led the music division at Roblox, where he pioneered the concept of virtual concerts, reaching millions of fans worldwide.
“Napster revolutionized digital music in the nineties, and now, with Infinite Reality, we’re ready to do it again,” Vlassopulos declared. “Music streaming has remained largely the same while the internet has evolved from desktop to mobile, from mobile to social, and now we are entering the immersive era. It’s time to reimagine what’s possible.”
Napster’s journey from a dorm room disruptor to a corporate commodity spans more than two decades. Founded by Shawn Fanning and Sean Parker in 1999, Napster allowed users to freely share MP3s before legal disputes with record labels and artists—including Metallica—led to its closure in 2001.
The brand has since been tossed from one owner to another—Roxio in 2003, Best Buy in 2008, Rhapsody in 2011. It was then purchased by VR company MelodyVR for $70 million in 2020, followed by blockchain firm Algorand in 2022.
This shift to Web3 breathed new life into the company, which began developing its own $NAPSTER token and made several acquisitions to promote a decentralized music service. Napster CEO Jon Vlassopulos told Decrypt in a 2023 interview, “The hope is that we can bring this innovation to the mainstream and get consumers—regular fans—just doing it.”
Today, Napster is a fully licensed streaming service, providing access to over 110 million tracks in 34 countries. The company claims to have paid artists and songwriters over $1 billion to date.
Infinite Reality intends to construct 3D virtual spaces where fans can experience concerts, participate in listening parties, and engage 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 envisions.
Infinite Reality aims to 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 have yet to go mainstream.
The acquisition is expected to close in the coming weeks,
