Infinite Reality, a tech innovation company based in Norwalk, Connecticut, has entered into an agreement to buy Napster for $207 million.
Infinite Reality unveiled plans to transform the streaming service once linked to music piracy into a social music platform where artists can “connect with, own, and monetize the relationship with their fans.”
As part of the expansion, Infinite Reality plans to create virtual 3D spaces where fans can attend concerts, social listening parties, and other immersive experiences.
Musicians will be able to sell event tickets, physical and virtual merchandise, and other exclusive digital content on the platform. They'll also gain access to enhanced analytics dashboards to help them better understand their fans’ behavior.
“By acquiring Napster, we’re paving a path to a brighter future for artists, fans, and the music industry at large,” John Acunto, cofounder and CEO of Infinite Reality, said in a statement.
“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, monetize, and measure their audiences,” he continued.
“We’re creating the ultimate music platform where artists can thrive in the next wave of digital disruption.”
Jon Vlassopulos, Napster’s CEO since 2022, will remain in his position while also taking on a broader role for Infinite Reality as part of the deal.
In a statement, Vlassopulos credited Napster for revolutionizing the digital music space in the 1990s, noting that Infinite Reality is poised to do the same again.
“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,” Vlassopulos said.
“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.
The Making of Napster
Napster, which is available in 34 countries, has access to more than 110 million tracks. The independent music service has paid more than $1 billion to artists and songwriters around the world over the past 20 years, according to Infinite Reality.Entrepreneurs Shawn Fanning and Sean Parker cofounded Napster in 1999 when they were 19 years old.
The pioneering file-sharing service was designed to allow users to easily share and download MP3 music files for free.
However, the Recording Industry Association of America and several artists, including Metallica and Dr. Dre, sued Napster for copyright infringement. The company was forced to shut down in 2001 and filed for bankruptcy in June 2002.
After being bought by the software company Roxio later that year, Napster went on to change hands several times.
The electronics retailer Best Buy acquired the brand in 2008. Three years later, the company merged with Rhapsody. In 2020, Napster was acquired by the British virtual-reality music company MelodyVR, which later sold the streamer to a consortium of blockchain firms—Hivemind Capital Partners and Algorand—in 2022.
“We are delighted that Napster is now going to be a part of Infinite Reality, validating a new paradigm for music and media,” Steve Kokinos, cofounder of Algorand and chairman of the board of Napster, said in a statement.
“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!”
