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

Napster. Now there’s a blast from the past, isn’t it? An iconic name that probably hasn’t crossed your mind in years, maybe even decades. But here we are, with Infinite Reality, an innovative player in the immersive web space, announcing its acquisition of Napster for a cool $207 million.

Just a couple of months ago, Infinite Reality closed a massive $3 billion investment deal. Riding on this influx of capital, they’re planning to revamp Napster, adding a “social music platform” twist. This iteration will feature branded 3D virtual spaces, aiming to host virtual concerts and listening parties that redefine how we experience music.

Apart from that, Infinite Reality has some exciting plans for Napster, including selling both tangible and virtual merchandise, offering exclusive digital content, and providing tickets to events.

John Acunto, the co-founder and CEO of Infinite Reality, shared his enthusiasm about the acquisition, stating, “By acquiring Napster, we aim to brighten the future for artists, fans, and the music industry as a whole.” For Acunto, this move is all about aligning with Infinite Reality’s vision to transition from the traditional 2D web experience to a more engaging, 3D interactive one. The goal? To equip creators with modern tools that boost engagement, monetization, and audience analytics.

Leading Napster’s new journey is CEO Jon Vlassopulos, whose experience with Roblox adds credibility to his role. He anticipates that the new platform will enable fans to connect with artists in immersive 3D environments, adding a social and experiential layer to the way music is consumed.

Infinite Reality, established back in 2019, has made a name for itself with iR Studio, an engine designed for crafting immersive digital experiences complete with virtual environments and avatars. While WebXR support is already built into their iR Engine, it hasn’t been activated in iR Studio yet. But there’s a possibility on the horizon that Napster could leverage WebXR, making it compatible with any VR headset using a WebXR browser, though this is purely speculative for now.

Napster’s journey has been nothing short of a rollercoaster since its bankruptcy in 2002, which happened due to issues with unlicensed P2P music sharing that famously angered Metallica. Over the years, it’s been passed around by various companies keen to capitalize on its nostalgic appeal, evolving from a peer-to-peer platform to a subscription-based streaming service.

And here’s a fun tidbit: Infinite Reality isn’t the first XR-focused company to grab hold of Napster. Back in August 2020, MelodyVR, a virtual concert company from London, acquired Napster for $70 million, aiming to deliver immersive concerts to VR headset users. Before Infinite Reality stepped in, Napster was under the wing of Algorand, a blockchain firm, which had ambitions of decentralizing the music industry.

It’s fascinating to see how this legendary brand is being reimagined and reshaped with every new owner, each bringing a unique vision to the table.