Infinite Reality Purchases Napster for $200M to Develop a Social Music Platform and Virtual Concerts

Napster—a name that might evoke some nostalgia, as it’s one you likely haven’t heard in quite a while. Recently, it’s made headlines again because the immersive web firm Infinite Reality has purchased the iconic brand for a cool $207 million.

With a substantial $3 billion investment secured just this past January, Infinite Reality is gearing up to transform Napster’s music streaming service. The innovative plan includes rolling out a “social music platform” that features branded 3D virtual spaces, promising fans virtual concerts and immersive listening parties like never before.

In addition to the music-centric experiences, Napster is set to feature sales of both physical and digital merchandise, along with exclusive content and event tickets. John Acunto, the co-founder and CEO of Infinite Reality, shared his excitement about the acquisition: “By bringing Napster into our fold, we’re clearing a path to a more vibrant future for artists, fans, and the entire music industry. This move perfectly aligns with Infinite Reality’s ambition to transition from the traditional 2D web to an engaging 3D realm, equipping creators with modern tools to better connect, earn from, and engage their audiences.”

Steering this next phase is CEO Jon Vlassopulos, whose previous experience with Roblox has fueled his vision for a next-gen platform. He sees a future where fans can interact with their favorite artists in 3D settings, making music consumption a community-centric and immersive experience.

Since being established in 2019, Infinite Reality has made waves with its flagship product, iR Studio. This engine specializes in crafting immersive websites, complete with social virtual environments and customizable avatars. While the iR engine boasts WebXR support, its current iteration doesn’t yet offer this feature through the iR Studio tool. Yet, there’s potential that Napster might eventually embrace WebXR, which could open doors for VR headset accessibility in the future, though this remains speculative for now.

Napster has had a somewhat tumultuous history, particularly since its notorious 2002 bankruptcy, which stemmed from its platform’s unauthorized P2P music sharing, famously challenged by Metallica. Since then, it has passed through a number of hands, each hoping to harness the brand’s wide appeal. Most recently, it evolved into a subscription-based streaming platform.

Interestingly, Infinite Reality isn’t the first company in the XR space to seize Napster. Back in August 2020, the virtual concert firm MelodyVR acquired the brand for $70 million, with sights set on introducing immersive video concerts to VR users. Before coming under Infinite Reality’s wing, Napster was owned by blockchain outfit Algorand, which had aspirations to decentralize its music offerings.

As Napster prepares for this new chapter, music enthusiasts and tech buffs alike eagerly anticipate how this iconic name will redefine social music experiences.