Napster existed for approximately three years before its closure in 2002, having been the subject of numerous lawsuits from major record labels and bands such as Metallica due to its users distributing music and other files freely online. Despite its brief existence, the peer-to-peer file-sharing platform made a lasting impact on the music industry, transforming how consumers obtained music and paving the way for the development of modern-day music streaming services.
In a recent development, 25 years after its inception, Napster has been acquired by the 3D technology company Infinite Reality for $207 million. Infinite Reality has announced ambitious plans for utilizing the Napster brand.
The company has expressed its intention to expand and reimagine Napster by providing artists with new capabilities for audience monetization and engagement, powered by Infinite Reality’s immersive technology, AI-driven tools, and audience network. In their press release, Infinite Reality detailed plans to introduce 3D virtual spaces for virtual concerts, social listening parties, and other immersive community-based experiences. Additionally, the platform will offer artists the opportunity to sell physical and virtual merchandise and event tickets, alongside brand sponsorship opportunities.
While the infamous peer-to-peer sharing version of Napster is widely known among internet users, the brand has, over the past decade, operated as a legal, paid music streaming service. Notably, Napster reportedly offers one of the highest per-play payouts to artists among music streaming services.
According to Infinite Reality, Jon Vlassopulos will continue to serve as the CEO of Napster following the acquisition. John Acunto, cofounder and CEO of Infinite Reality, stated that the acquisition marks a step toward a brighter future for artists, fans, and the music industry as a whole. Acunto emphasized the evolving relationship between artists and fans, highlighting fans’ desire for hyper-personalized, intimate access to artists while artists seek innovative methods to strengthen connections with fans and generate new revenue streams. He referred to the future Napster platform as the ultimate destination for artists to succeed in the next phase of digital transformation.
The success of virtual in-game concerts by major video game franchises such as Fortnite has been noted in recent years. Other platforms like Turntable.fm, which gained popularity in 2011 before closing in 2013, did not succeed in their attempts to create digital music streaming communities. Observers are keen to see how Infinite Reality will approach this concept, especially given recent shifts in the direction of initiatives like Mark Zuckerberg’s Meta and its “metaverse” concept.