Infinite Reality, a tech company, acquired Napster for $207 million, once the brand synonymous with digital music piracy.
This deal marks another step in the history of Napster, which has been sold multiple times during the last decade.
Infinite Reality is a company that focuses on artificial intelligence (AI), extended reality, and immersive digital experience. It plans to turn Napster into a platform that will allow fans to directly interact with musicians.
This acquisition is in line with the broader music industry trend, which sees companies increasingly monetizing fan engagement outside of streaming revenues.
Infinite Reality’s CEO John Acunto said to CNBC the company sees Napster in the future as a tool that allows fans to engage with their favourite artists within virtual 3D environments.
Infinite Reality plans to launch Napster with virtual concerts and interactive experiences for fans
Infinite Reality has ambitious plans for Napster that go beyond traditional music streaming.
It plans to combine social features, digital product sales and immersive virtual experience, creating a space where fans can attend concerts and listen in on listening parties. They will also be able to interact with the artists through customized virtual environments.
Acunto described it as “Clubhouse multiplied by a trillion,” in reference to the popular social audio platform which saw an increase of popularity during pandemic.
He stressed the importance of dedicated virtual spaces for music communities.
Acunto said that when they think of clients with audiences, whether it’s influencers or creators as well as musicians, “we see an enormous opportunity to create connected spaces” around music.
We just can’t imagine anyone in the streaming industry doing it right now.
Artists will also be able to monetize their work as part of the company’s future vision. Napster will allow labels and musicians to offer both virtual and physical merchandise.
Jon Vlassopulos (Infinite Reality’s Co-Founder, Chief Innovation Officer, and Napster CEO) highlighted that artists can create unique digital experiences.
Vlassopulos explained: “Imagine being able to step into a virtual space with friends and watch an exclusive concert, chat with your favorite artists in their virtual hangout when they release a brand new song, and buy their exclusive physical and digital merchandise.”
Napster: the long road from pirate to legitimate
The Napster name still has echoes from its controversial history, but today’s Napster network is far removed from the peer to peer file sharing network that crashed the music industry at the end of the 1990s.
In the early 2000s, after a series of lawsuits by record labels and musicians, Shawn Fanning, Sean Parker and their original Napster were shut down.
Rhapsody, a streaming service that acquired Napster in 2011, rebranded as Rhapsody by 2016 and incorporated the brand.
Napster was acquired several times since then reflecting changing technology trends.
MelodyVR, a virtual reality company, purchased Napster in 2020 for $70m, with the hope of transforming it into a music-live streaming platform.
Hivemind, Algorand, and other crypto-focused firms acquired Napster two years later. They aimed to incorporate blockchain and Web3 technology into their business model.
These efforts have not been successful.
Infinite Reality is a brand that has been trying to reinvent itself in the music industry.
Infinite Reality has broader goals
Infinite Reality is aggressively growing its digital entertainment footprint.
In recent months the company has acquired several notable companies, such as Drone Racing League and virtual reality retailer Obsess.
Infinite Reality announced earlier this year that it had raised $3 billion, valued at $12.25billion.
The company, however, hasn’t disclosed the names of its investors. They have stated that they prefer to be anonymous.
Infinite Reality is not only a music company, but also a digital entertainment and esports business.
It owns popular esports titles like League of Legends, Call of Duty and will use this platform to promote music on Napster.
Acunto believes that the music industry is moving towards direct engagement with fans and Napster will allow artists to capitalize on these new revenue streams.
He said: “I am convinced that the relationship between artist and fan is changing. Fans want hyper-personalized access to their favourite artists while artists seek innovative ways to connect with fans, as well as access new revenue streams.”
Infinite Reality: Can it succeed where other programs have failed?
Over the years, Napster has failed to have any lasting effect on the music industry.
It remains to be determined whether Infinite Reality will succeed in integrating metaverses and creating virtual fan experiences that resonate with the music audience.
The music industry is already experimenting with streaming technologies, virtual reality and Web3 technology, but the results have been mixed.
Many blockchain-based music projects have not been able to reach mainstream acceptance.
Napster has, on the other hand, a very well-known name in this industry and is known for its disruptive history.
This latest acquisition, which combines Infinite Reality’s digital experience expertise with its resources, could represent the most bold attempt to reinvent Napster in the 21st century.
The company believes that fans of music want something more than streaming. They want an immersive experience that allows them to get closer to their favorite artists.
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