Napster, now a streaming service, sells for $207m to Infinite Reality
A brand that was notoriously connected to music piracy before re-emerging as a subscription music service, has been sold to Infinite Reality for $207m.
The tech startup announced on Tuesday it had bought Napster in hopes of transforming the streaming service into a social music platform where artists can connect with fans and better monetize off their work.
'The internet has evolved from desktop to mobile, from mobile to social, and now we are entering the immersive era. Yet, music streaming has remained largely the same. It's time to reimagine what's possible,' said Napster's CEO, Jon Vlassopulos, in a blog post.
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Among its plans to update Napster, Infinite Reality said it would create virtual 3D spaces that will allow fans to attend concerts, and give musicians or labels the ability to sell digital and physical merchandise. Artists will also receive a wider range of metrics and analytics to better understand the behavior of platform users.
'We can think of no better use case for our technology than putting it in the hands of music artists who are constantly pushing the boundaries of what's possible,' said Infinite Reality's chief business officer, Amish Shah.
Napster was launched in 1999 by Shawn Fanning and Sean Parker and quickly became the first significant peer-to-peer file-sharing application. It shuttered in the early 2000s after the record industry and popular rock band Metallica sued over copyright violations. Rhapsody later bought the brand in 2011 and relaunched it as a music streaming service.
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