- Artificial Intelligence startup Infinite Reality has acquired music streaming service Napster in a $207 million deal.
- The acquisition aims to transform Napster into a music-focused Metaverse platform with virtual concerts, social listening parties, and merchandise sales.
- Napster, which previously ventured into Web3 with plans for tokens on Algorand blockchain, will now focus on creating immersive 3D music experiences.
Infinite Reality has purchased former music piracy platform turned streaming service Napster for $207 million, with plans to reimagine it as an immersive metaverse-based music platform. The acquisition, announced March 25, will integrate virtual reality experiences into the once-controversial music service.
According to Infinite Reality’s statement, the revamped Napster will feature branded 3D virtual spaces where users can attend virtual concerts, participate in social listening events, and purchase digital and physical merchandise from artists.
Jon Vlassopulos, who will remain as Napster’s CEO following the acquisition, described the vision: “Imagine stepping into a virtual venue to watch an exclusive show with friends, chat with your favorite artist in their own virtual hangout as they drop their new single, and be able to directly buy their exclusive digital and physical merch.”
He added that the internet is evolving into an immersive era, following previous transitions from desktop to mobile and social platforms.
The acquisition will provide musicians with AI-powered customer management tools and analytics dashboards to monitor fan engagement and cross-promote with Infinite Reality’s other entertainment properties, including Esports teams.
Napster’s transformation represents yet another chapter in the platform’s storied history. Originally launched in 1999 as a peer-to-peer file-sharing service primarily used for music piracy, Napster was forced to shut down in 2001 following multiple copyright infringement lawsuits.
After bankruptcy, the Napster brand was purchased and relaunched as a legitimate music streaming service. The platform has changed owners multiple times over the past two decades, with blockchain firm Algorand and crypto investment firm Hivemind acquiring it most recently in 2022.
Under its previous ownership, Napster made several forays into Web3. The company announced plans in June 2022 to launch a Napster token on the Algorand blockchain that users could use to purchase music subscriptions and other content. In February 2023, Napster also acquired Web3 music startup Mint Songs.
John Acunto, co-founder and CEO of Infinite Reality, stated that his team aims to lead an “internet industry shift from a flat 2D clickable web to a 3D conversational one.”
The Napster acquisition is expected to close within weeks. Infinite Reality’s stated goal is to develop Napster into the leading immersive music platform for artists, fans, and curators by enhancing audience monetization and engagement capabilities.
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