Napster, claiming to be the longest-serving digital music platform, has been acquired in a deal worth $207 million.
The new owner of the platform is a tech startup, Infinite Reality (IR), focused on extended reality (XR), artificial intelligence (AI), and other immersive technologies.
As part of the acquisition, Napster’s CEO John Vlassopulos (former global music leader at Roblox) will continue in his role and will broaden his responsibilities at Infinite Reality globally.
This acquisition comes just weeks after Infinite Reality closed a $3 billion investment, marking the company’s valuation at $12.25 billion.
Supported by investors such as RSE Ventures, Liberty Media, and T-Mobile Ventures, Infinite Reality also counts celebrities like Steve Aoki, Imagine Dragons, NBA player Rudy Gobert, and tennis player Taylor Fritz among its backers.
Plans for the Future
With the acquisition of Napster, Infinite Reality aims to create “branded 3D virtual spaces,” allowing fans to experience virtual concerts, social listening parties, and other immersive activities featuring both physical and virtual goods, exclusive digital content, and event tickets.
The company emphasized that the “newly revitalized Napster” will set itself apart from competitors as a “social music platform,” prioritizing fan engagement over passive listening.
“By acquiring Napster, we pave the way to a bright future for artists, fans, and the music industry as a whole,” stated John Akunto, co-founder and CEO of Infinite Reality.
“This strategic move aligns with our vision to transform the internet from a flat 2D experience to a vibrant 3D interactive environment, providing creators with modern tools for better engagement, monetization, and audience measurement.
“We create the best musical platform where artists can prosper in the next wave of digital evolution.”
John Akunto, Infinite Reality
Akunto expressed, “I firmly believe that artist-fan relationships develop when fans crave hyper-personal, intimate access to their favorite artists, while artists seek innovative ways to deepen their connections with fans and explore new revenue streams.
Napster, which revolutionized the music industry back in June 1999 when co-founders Shawn Fanning and Sean Parker launched a controversial file-sharing service, has since evolved into a fully licensed streaming music service.
After filing for bankruptcy protection in 2002, Napster’s assets and brand were acquired by Roxio. It was later purchased by Best Buy in 2008 for $121 million.
In December 2011, Napster merged with Rhapsody, becoming an international brand of licensed music streaming. Following a sale to UK-based Virtual Reality Concerts Company MelodyVR in August 2020 for $70.6 million, Napster saw another acquisition in May 2022, this time by Hivemind and Algorand, aiming to expand into the Web3 space.
Now, with Infinite Reality’s plans announced on Tuesday, they aim to transform Napster from a streaming service into a social and interactive music platform, leveraging immersive technology and integrating a native audience.
To date, Napster claims to have paid over $1 billion to artists and songwriters globally in the last 20 years.
“Napster made a revolution in digital music in the nineties, and now, with Infinite Reality, we are ready to do it again.”
John Vlassopulos, Napster
John Vlassopulos stated, “With the transition from desktop to mobile, from mobile to social, we are now entering the era of immersive technology while traditional music streaming remains largely the same. This is the moment for transformation. Imagine entering a virtual venue to catch an exclusive show with friends, interacting with your favorite artist during their virtual party when they launch new singles, while having the option to purchase their exclusive digital and physical merchandise.
With Infinite Reality’s expertise in immersive 3D technology, we will turn the next-gen Napster into a platform where fans don’t just listen; they experience music in entirely novel ways. This marks not just a new chapter for Napster, but the beginning of a more interactive and social experience for the next era of the internet.
“We are excited that Napster will now become part of Infinite Reality, heralding a new paradigm for music and media.”
Steve Kokinos, Napster
Steve Kokinos, co-founder of Algorand and Chairman of the Napster Board, remarked, “We are thrilled that Napster is now integrated into Infinite Reality, signifying a new paradigm in music and media. We have always believed in the long-term vision of John’s experience from Roblox, as the next frontier of digital music and super-fans is more engaging, social, and commercial.
“The enduring strength of the Napster brand is a testament to its resilience, and it is an honor for us to harness its innovative spirit and unparalleled experience in the music industry.”
Amish Shah, Infinite Reality
Amish Shah, Chief Business Officer of Infinite Reality, commented, “As we lead the industry’s shift from 2D to 3D web experiences, there is no community more critical than the creators who consistently leverage innovations to express themselves and challenge outdated systems.
“The longevity of the Napster brand is a testament to its resilience, and it is an honor for us to tap into its innovative legacy and unmatched expertise in the music industry.
“We cannot imagine a better application for our technology than in the hands of musicians who continuously push the boundaries of what is achievable.”
Lucas focuses on the interaction between music and society. He specializes in how music influences and reflects cultures, analyzing the role of sound in social, political, and cultural events around the world.
