Infinite Reality, a company specializing in 3D and AI-powered experiences for media, ecommerce, and marketing, has agreed to acquire Napster for $207 million. This acquisition marks another transformation for the brand that originally launched in 1999 as a peer-to-peer (P2P) music file-sharing service. Now, Napster is set to evolve into a platform focused on marketing musicians within the metaverse.
The Norwalk, Connecticut-based Infinite Reality plans to transform Napster into a social music platform prioritizing active fan engagement over passive listening. This will enable artists to connect with, own, and monetize their relationships with fans. Jon Vlassopulos, Napster’s CEO since 2022, will continue in his role.
Since 2016, Napster has operated as a legal streaming service offering over 110 million high-fidelity tracks, some with lossless audio. Subscribers can listen offline and watch music videos, starting at $11 per month.
Infinite Reality, which also develops Web3 technology, finds appeal in Algorand’s blockchain background and Napster’s licenses for streaming millions of songs. The acquisition aims to enhance fan interaction through branded 3D virtual spaces for virtual concerts, social listening parties, gamification, and opportunities for fans to purchase tickets, merchandise, and exclusive digital content.
Artists will also benefit from AI-powered customer service, sales, and community management agents, along with enhanced analytics dashboards to better understand fan behavior. Infinite Reality CEO John Acunto stated, “The artist-fan relationship is evolving, with fans craving hyper-personalized, intimate access to their favorite artists, while artists seek innovative ways to deepen connections and access new revenue streams.”
Napster’s journey includes significant legal challenges in its early days due to pirated MP3 file sharing, leading to lawsuits from Metallica and the Recording Industry Association of America. After shutting down in 2001 and filing for bankruptcy in 2002, the brand changed hands multiple times, eventually becoming a streaming service in 2016 under Rhapsody.
Infinite Reality has not disclosed immediate changes to the current streaming service but will focus on creating new monetization strategies using emerging technologies. Despite previous failures in virtual music events, Napster’s resilience suggests potential for future reinvention.
— news from Ars Technica