Infinite Reality Acquires Napster for $207 Million to Revolutionize Music Streaming

Infinite Reality has acquired Napster for $207 million, aiming to transform the streaming service into a platform where fans can engage in virtual spaces, attend concerts, and purchase merchandise directly from artists. This acquisition marks the highest price tag for Napster, which has been through several ownership changes since its controversial file-sharing days in the late 1990s.

Infinite Reality, a virtual reality startup, is betting that music fans seek more than just passive listening experiences. The company plans to create 3D virtual spaces where fans can experience concerts, join listening parties, and interact with artists. The platform will also offer physical and digital merchandise, exclusive content, and event tickets directly from artists.

John Acunto, Co-Founder and CEO of Infinite Reality, expressed optimism about the acquisition, stating that it paves the way for a brighter future for artists, fans, and the music industry. He emphasized the creation of the ultimate music platform where artists can thrive in the next wave of digital disruption.

Current Napster CEO Jon Vlassopulos will remain in his role and expand his responsibilities. Vlassopulos, who previously headed music at Roblox, pioneered virtual concerts that reached millions of fans. He believes that the internet has evolved from desktop to mobile, from mobile to social, and is now entering the immersive era. He sees this as an opportunity to reimagine what is possible in music streaming.

Napster's journey from a dorm room disruptor to a corporate asset spans over two decades. Founded by Shawn Fanning and Sean Parker in 1999, the original service allowed users to freely share MP3s before legal battles with record labels and artists like Metallica shut it down in 2001. Since then, the brand has changed hands multiple times, including Roxio in 2003, Best Buy in 2008, Rhapsody in 2011, VR company MelodyVR in 2020, and blockchain firm Algorand in 2022.

Infinite Reality's acquisition of Napster comes at a time when the company has been working on its own $NAPSTER token and making acquisitions to promote a decentralized music service. The company aims to bring this innovation to the mainstream and engage regular fans in the process. Today, Napster is a fully licensed streaming service with 110 million tracks available in 34 countries, having paid artists and songwriters over $1 billion.

Infinite Reality plans 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. Amish Shah, chief business officer of Infinite Reality, highlighted the potential of putting their technology in the hands of music artists who are constantly pushing the boundaries of what's possible.

Whether this latest reinvention will give Napster a sustainable future remains to be seen. Previous attempts to revitalize the service have yielded mixed results, and metaverse-style music experiences have not yet gone mainstream. The acquisition is expected to close in the coming weeks, with new features rolling out in the future as Infinite Reality continues to evolve the brand.