More than 25 years after it flipped the music world on its head, Napster just got a new owner — and a new mission. On Tuesday, 3D tech company Infinite Reality announced it bought the once-notorious music-sharing brand for a staggering $207 million.
For millennials, the name Napster brings back memories of dial-up internet, Winamp playlists and burned CDs. But the new owners aren’t trying to revive the old file-sharing platform. Instead, they want to take Napster into the metaverse.
“No Better Name Than Napster to Disrupt”
Infinite Reality CEO John Acunto told CNBC the plan is to create virtual 3D spaces where fans can hang out, attend digital concerts, and even buy merch. Think of it like Fortnite concerts but focused entirely on music communities.
“We just don’t see anybody in the streaming space creating spaces for music,” Acunto said. “I think there’s no better name than Napster to disrupt.”
Napster’s current CEO, Jon Vlassopulos, added that artists will be able to build creative, immersive environments to connect with fans. He gave the example of a reggae artist creating a virtual beach lounge.
Napster’s Wild Ride
Napster launched in 1999 and became the first big peer-to-peer file-sharing service. Users could trade MP3s for free, which quickly drew lawsuits from Metallica and the Recording Industry Association of America. The service was shut down in 2001 and filed for bankruptcy the next year.
Since then, the brand has changed hands multiple times, going from Roxio to Best Buy to Rhapsody, before eventually becoming a legitimate streaming service in 2016. It currently offers on-demand music for $11 a month.
Some longtime users stuck around. One Reddit user wrote, “As a Napster/Rhapsody subscriber for the last 10 years, yes it was still around and you were missing out.”
Virtual Concerts, Digital Merch and More
Infinite Reality says Napster’s streaming licenses made it an attractive buy. The company also liked that the previous owner, Algorand, brought in blockchain features, which fit with Infinite Reality’s broader Web3 goals.
Now, Napster is set to become a social, immersive music experience. Acunto described it as “Clubhouse times a trillion,” referencing the audio app that briefly exploded in popularity during the pandemic.
Infinite Reality has been on a buying spree lately, scooping up companies like the Drone Racing League and virtual retail brand Obsess. In January, it raised $3 billion at a $12.25 billion valuation — but hasn’t said who the investors are.
So yes, Napster is back. It’s not what it used to be, but it might be about to shake things up again — this time, in the metaverse.