NEW YORK – The iconic Napster brand, once synonymous with music piracy and later revived as a subscription-based service, has been acquired by Infinite Reality for $207 million.
Infinite Reality, a tech startup, announced the acquisition on Tuesday. The company envisions evolving Napster into an innovative social music platform that fosters a stronger bond between artists and their audiences, while also offering artists new opportunities to profit from their music.
“The internet’s journey from desktop to mobile, and then to social, is now heading into a new immersive era. Although music streaming remains largely unchanged, it’s time to ask, what more can we do?” blogged Napster’s CEO, Jon Vlassopulos.
Infinite Reality has big plans for Napster’s future, including the creation of virtual 3D environments. These spaces will provide fans the experience of attending virtual concerts and will allow musicians or record labels to market both digital and physical merchandise. Additionally, artists will gain access to comprehensive metrics and analytics, granting them greater insight into user interactions on the platform.
“We couldn’t think of a better application of our technology than empowering music artists. These are the very creatives who constantly push the boundaries of what’s achievable,” stated Infinite Reality’s Chief Business Officer, Amish Shah.
Debuting in 1999 by Shawn Fanning and Sean Parker, Napster rapidly grew into a prominent peer-to-peer file-sharing service. However, it closed in the early 2000s following lawsuits from the music industry and the famous band Metallica over copyright infringement. In 2011, Rhapsody acquired Napster, reintroducing it as a music streaming service.