Napstar, a brand that once put the music industry in panic mode but faded, was acquired for $207 million.
Infinite Reality has bought streaming services to transform it into a platform where fans can hang out in virtual spaces, take part in concerts and buy products directly from artists.
The deal is also the best price tag ever for Napster, who has been circulating half a dozen businesses from Rovio, including Algorand. The endless reality bets that music fans want more than just passive rescission.
“Acquiring Napster paves the way for a bright future for artists, fans and the music industry as a whole,” Infinite Reality co-founder and CEO John Acunto said in an official statement. “We are creating the ultimate music platform where artists can thrive in the next wave of digital destruction.”
Current Napster CEO Jon Vlassopulos maintains and expands his role. Before joining Napster in 2022, he led music at Roblox, where he pioneered virtual concerts reaching millions of fans.
“Napster revolutionized digital music in the 90s, but now it’s an endless reality and we’re ready to do it again,” Vlassopulos said. “The Internet has evolved from desktop to mobile and from mobile to social, and we are now in an immersive era. But music streaming remains roughly the same. It’s time to rethink what is possible.”
The journey from dorm room vandals to corporate assets spans 20 years. Founded in 1999 by Shawn Fanning and Sean Parker, the original service allowed users to share MP3s freely before a legal battle with artists like Metallica in 2001.
Since then, the brand has bounced back among owners – Roxio in 2003, Best Buy in 2008, and Rhapsody in 2011. VR Company MelodyVr was purchased for $70 million in 2020, followed by blockchain company Algorand in 2022.
This move to Web3 brought the company back, which started work on its own $Napster token and made several acquisitions to promote decentralized music services. “We hope to bring this innovation to the mainstream and get consumers the usual fans,” said Jon Vlassopulos, CEO of Napster. Decryption In a 2023 interview. “So it was pretty much back to (points) and there was a collectable download that was missing, and it wasn’t a chain.”
Today, Napster is a fully licensed streaming service with 110 million trucks available in 34 countries. The company claims it paid more than $1 billion to artists and songwriters.
Infinite Reality plans to create a 3D virtual space where fans can experience concerts, participate in listening parties and interact with artists. The platform sells physical and digital products, provides exclusive content, and distributes event tickets directly.
“I walk into a virtual venue, watch exclusive shows with friends, chat with my favorite artists, and chat with my own virtual hangouts as I drop a new single,” Vlassopulos explained in a company statement.
Infinite Reality connects Napster with other entertainment properties, such as drone racing leagues and esports teams, which compete in games like Call of Duty. This cross promotion will help artists reach younger, game-focused audiences.
“We can think of no better use cases for our technology than putting it in the hands of music artists who are constantly pushing the boundaries of what is possible,” said Amish Shah, Chief Business Officer at Infinite Reality.
It remains to be seen whether this latest reinvention ultimately gives Napster a sustainable future. Previous attempts to activate services have had mixed results, and metaverse style music experiences have not been made to be precise.
The acquisition is expected to close in the coming weeks, with new features rolling out in the future as endless reality “evolves the brand even further.”
Edited by James Rubin
