Napster, which claims to be the longest-operating digital music service, has been acquired in a $207 million deal.
The platform’s new owner is tech startup Infinite Reality (iR), a company focused on extended reality (XR), artificial intelligence (AI), and other immersive technologies.
As part of the acquisition, Napster CEO Jon Vlassopulos (a former Global Head of Music at Roblox) will continue as CEO of Napster, and will take on a broader role for Infinite Reality globally.
Infinite Reality is backed by investors including RSE Ventures, Liberty Media, Lux Capital, Lerer Hippeau, MGM, T-Mobile Ventures, Courtside VC, Exor, Terracap, IAC, Live Nation, as well as notable individuals such as Steve Aoki, Imagine Dragons, NBA player Rudy Gobert, and tennis player Taylor Fritz.
With Napster, Infinite Reality plans to create “branded 3D virtual spaces” where it says “fans can enjoy virtual concerts, social listening parties, and other immersive and community-based experiences Sell both physical and virtual merchandise, exclusive digital content, and event tickets”.
The company added in a press release on Tuesday (March 25) that the “newly-reimagined Napster” will differentiate itself from rivals in the market by serving as “a social music platform that prioritizes active fan engagement over passive listening”.
“By acquiring Napster, we’re paving a path to a brighter future for artists, fans, and the music industry at large,” said John Acunto, Co-Founder and CEO of Infinite Reality.
“This strategic move aligns with Infinite Reality’s vision to lead an internet industry shift from a flat 2D clickable web to a 3D conversational one – giving all creators modern tools to better engage, monetize, and measure their audiences.
“We’re creating the ultimate music platform where artists can thrive in the next wave of digital disruption.”
John Acunto, Infinite Reality
Acunto added: “I firmly believe that the artist-fan relationship is evolving, with fans craving hyper-personalized, intimate access to their favorite artists, while artists are searching for innovative ways to deepen connections with fans, and access new streams of revenue.
“We’re creating the ultimate music platform where artists can thrive in the next wave of digital disruption.”
Napster upended the music industry in June 1999 when co-founders Shawn Fanning and Shaun Parker launched what was then the controversial online file-sharing site that later became the fully licensed streaming music service that operates today.
By June 2002, Napster had filed for Chapter 11 bankruptcy protection in the US, and in September that of year its assets and brand were acquired by Roxio. In September 2008, Napster was acquired again by US electronics retailer Best Buy in a US $121 million deal.
In December 2011, Napster was merged with Rhapsody, becoming the international brand of the firm’s licensed music streaming service. In August 2020, Napster had been sold to UK-listed virtual reality concerts company MelodyVR in a $70.6m deal that closed in April 2021.
In May 2022, the platform was acquired yet again, by Hivemind and Alogrand, with plans at the time to expand the Napster brand into the Web3 space.
Three years later, Napster’s newest parent company, Infinite Reality, said on Tuesday that it “plans to transform Napster beyond streaming into a social and interactive music platform, leveraging its immersive technology and audience network of digitally native fans”.
Napster says it has paid over $1 billion to artists and songwriters worldwide over the past two decades.
“Napster revolutionized digital music in the nineties, and now, with Infinite Reality, we’re ready to do it again.”
Jon Vlassopulos, Napster
Jon Vlassopulos, CEO of Napster, said: “Napster revolutionized digital music in the nineties, and now, with Infinite Reality, we’re ready to do it again. 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.”
Added Vlassopulos: “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, and be able to directly buy their exclusive digital and physical merch.
“With Infinite Reality’s expertise in immersive 3D technology, we will transform Napster into a next-generation platform where fans don’t just listen on their own—they experience music in entirely new ways. This isn’t just a new chapter for Napster, it’s the beginning of a more interactive and social music experience for the next era of the internet.”
“We are delighted that Napster is now going to be a part of Infinite Reality, validating a new paradigm for music and media.”
Steve Kokinos, Napster
Steve Kokinos, co-founder of Algorand and Chairman of the Board of Napster, said: “We are delighted that Napster is now going to be a part of Infinite Reality, validating a new paradigm for music and media.
“We always believed in Jon’s long held vision and experience from Roblox that the next frontier of digital music and super fan experiences will be more immersive, more social, and more shoppable. Excited to see what they create together!”
“The endurance of the Napster brand stands as a testament to its resilience, and we are honored to build upon its pioneering spirit and unparalleled expertise in the music industry.”
Amish Shah, Infinite Reality
Amish Shah, Chief Business Officer of Infinite Reality, said: “As we think about leading a sectoral shift from 2D web to 3D web, no other community is more critical than creators who are always at the forefront of leveraging innovation to express themselves and disrupt legacy systems.
“The endurance of the Napster brand stands as a testament to its resilience, and we are honored to build upon its pioneering spirit and unparalleled expertise in the music industry.
“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.”
