Napster, the once-revolutionary peer-to-peer file-sharing service turned music streaming platform, has been acquired by 3D technology company Infinite Reality for $207 million. This acquisition signals a new era for Napster, focusing on metaverse integration and enhanced social features.
Infinite Reality’s vision for Napster extends beyond traditional music streaming. The company plans to leverage Napster’s existing music library of over 110 million songs and integrate it into a metaverse platform. This will enable artists and labels to create immersive 3D spaces for fans, hosting virtual concerts, listening parties, and exclusive experiences. Furthermore, the platform will incorporate e-commerce channels, allowing artists to sell both physical and digital merchandise directly to their fans.
CEO John Acunto, in an interview with CNBC, emphasized the need for a dedicated space for musical communities within the metaverse. He highlighted the lack of such spaces in the current streaming landscape, positioning Napster as a unique offering for artists, influencers, and creators seeking to connect with their audiences in innovative ways. This strategy aligns with the growing trend of virtual concerts and experiences, popularized by platforms like Fortnite, PUBG Mobile, TikTok, and Meta’s AmazeVR app, particularly during the COVID-19 pandemic.
While Spotify introduced virtual concert features in 2021 after extensive testing, Napster lagged behind in embracing this evolving trend. This, combined with Napster’s extensive music licensing rights, made it an attractive acquisition target for Infinite Reality, which aims to propel the platform into the metaverse age. Acunto believes Napster’s legacy and name recognition offer a unique opportunity to disrupt the music industry once again.
This acquisition marks another chapter in Napster’s turbulent history. After facing legal challenges due to piracy concerns in its early file-sharing days, Napster was acquired and relaunched as a music streaming service by Rhapsody in 2016. This latest acquisition by Infinite Reality represents a significant investment in the platform’s future, aiming to capitalize on the growing metaverse trend.
The $207 million deal comes nearly a decade after Napster’s relaunch as a streaming service, following its acquisition by Rhapsody. Founded in 1999 by Sean Parker and Shawn Fanning, Napster initially gained notoriety for its peer-to-peer file-sharing technology, which allowed users to share MP3 files. However, after facing numerous lawsuits from the music industry, including a high-profile case involving Metallica, Napster ceased its file-sharing operations in 2001. Since then, the platform has been acquired and revived by various companies, including Best Buy and Rhapsody, before its latest acquisition by Infinite Reality.
