Tech company Infinite Reality has entered into a definitive agreement to acquire Napster for $207 million.
Infinite Reality describes itself as “an innovation company powering the next generation of digital media and ecommerce through extended reality (XR), artificial intelligence (AI), and other immersive technologies”.
Napster is a fully-licensed independent music service with more than 110 million high fidelity tracks in its catalogue.
Although it was originally associated with illegal file-sharing, the Napster brand has been a legitimate platform in the music streaming era. Infinite Reality said Napster has paid over $1 billion to artists and songwriters worldwide over the last two decades.
Napster has now been sold three times in the last five years. Infinite Reality plans to transform Napster beyond streaming into a social and interactive music platform, leveraging its immersive technology and audience network. This includes those engaged with IR’s entertainment assets, such as the Drone Racing League (DRL) and esports organisations competing in titles like Call of Duty and League Of Legends.
“The newly-reimagined Napster will differentiate itself from competitors by serving as a social music platform that prioritises active fan engagement over passive listening, allowing artists to connect with, own, and monetise the relationship with their fans,” said a statement.
Napster and Infinite Reality plan to offer artists the tools to create branded 3D virtual spaces; sell physical and virtual merchandise, as well as exclusive digital content, and event tickets; leverage AI-powered customer service, sales and community management agents for greater personalisation; access enhanced analytics; integrate gamification to increase fan engagement and loyalty, among other initiatives.
“By acquiring Napster, we’re paving a path to a brighter future for artists, fans, and the music industry at large,” said John Acunto, co-founder and CEO of Infinite Reality. “This strategic move aligns with Infinite Reality’s vision to lead an internet industry shift from a flat 2D clickable web to a 3D conversational one – giving all creators modern tools to better engage, monetise, and measure their audiences.
“I firmly believe that the artist-fan relationship is evolving, with fans craving hyper-personalised, intimate access to their favourite artists, while artists are searching for innovative ways to deepen connections with fans, and access new streams of revenue. We’re creating the ultimate music platform where artists can thrive in the next wave of digital disruption.”
By acquiring Napster, we’re paving a path to a brighter future for artists, fans, and the music industry at large
John Acunto
As part of this acquisition, Napster CEO Jon Vlassopulos will continue as CEO of Napster, and will take on a broader role for IR globally.
Appointed CEO of Napster in 2022, Vlassopulos oversaw the restructuring of the company and led its evolution into new business areas, including artist-fan engagement and immersive music experiences. Previously, he served as vice president and global head of music at Roblox.
"Napster revolutionised digital music in the nineties, and now, with Infinite Reality, we’re ready to do it again,” he said. “The internet has evolved from desktop to mobile, from mobile to social, and now we are entering the immersive era. Yet, music streaming has remained largely the same. It’s time to reimagine what’s possible. 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.
“With Infinite Reality’s expertise in immersive 3D technology, we will transform Napster into a next-generation platform where fans don’t just listen on their own – they experience music in entirely new ways. This isn’t just a new chapter for Napster, it’s the beginning of a more interactive and social music experience for the next era of the internet."
"We are delighted that Napster is now going to be a part of Infinite Reality, validating a new paradigm for music and media,” said Steve Kokinos, co-founder of Algorand and chairman of the board of Napster. “We always believed in Jon’s long held vision and experience from Roblox that the next frontier of digital music and super fan experiences will be more immersive, more social, and more shoppable. Excited to see what they create together!”
“As we think about leading a sectoral shift from 2D web to 3D web, no other community is more critical than creators who are always at the forefront of leveraging innovation to express themselves and disrupt legacy systems,” said Amish Shah, chief business officer of Infinite Reality. “The endurance of the Napster brand stands as a testament to its resilience, and we are honored to build upon its pioneering spirit and unparalleled expertise in the music industry. We can think of no better use case for our technology than putting it in the hands of music artists who are constantly pushing the boundaries of what’s possible.”
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