Infinite Reality acquires iconic music service Napster
Infinite Reality™ (iR), an innovation company powering the next generation of digital media and ecommerce through extended reality (XR), artificial intelligence (AI), and other immersive technologies, announced the company has entered into a definitive agreement to acquire the iconic online music brand Napster for $207 million.
Napster, a fully-licensed independent music service, delivers over 110 million high fidelity tracks from the top artists in the world to its loyal global subscriber base. Over the past two decades Napster has paid over $1 billion to artists and songwriters worldwide, establishing itself as a cornerstone of the music streaming industry and the longest operating digital music service. Infinite Reality plans to transform Napster beyond streaming into a social and interactive music platform, leveraging its immersive technology and audience network of digitally native fans. This includes the millions engaged with iR's entertainment assets, such as the Drone Racing League (DRL) and top esports organisations competing in titles like Call of Duty and League of Legends.
The newly-reimagined Napster will differentiate itself from competitors by serving as a social music platform that prioritizes active fan engagement over passive listening, allowing artists to connect with, own, and monetise the relationship with their fans. Through this acquisition, Napster and Infinite Reality plan to offer artists the tools to:
Create branded 3D virtual spaces where fans can enjoy virtual concerts, social listening parties, and other immersive and community-based experiences
Sell both physical and virtual merchandise, exclusive digital content, and event tickets
Leverage AI-powered customer service, sales, and community management agents for greater personalization
Access enhanced analytics dashboards to better understand fan behaviour
Integrate gamification to increase fan engagement and loyalty
Leverage iR's audience network — including DRL and top esports teams — to seamlessly cross-promote and bridge fan communities
Offer brands innovative sponsorships that connect with millions of young, digitally savvy consumers
'By acquiring Napster, we're paving a path to a brighter future for artists, fans, and the music industry at large', said John Acunto, Co-Founder and CEO of Infinite Reality. 'This strategic move aligns with Infinite Reality's vision to lead an internet industry shift from a flat 2D clickable web to a 3D conversational one – giving all creators modern tools to better engage, monetise, and measure their audiences. I firmly believe that the artist-fan relationship is evolving, with fans craving hyper-personalised, intimate access to their favourite artists, while artists are searching for innovative ways to deepen connections with fans, and access new streams of revenue. We're creating the ultimate music platform where artists can thrive in the next wave of digital disruption'.
As part of this acquisition, Napster CEO Jon Vlassopulos will continue as CEO of Napster, and will take on a broader role for iR globally. Appointed CEO of Napster in 2022, Vlassopulos oversaw the restructuring of the company and led its evolution into new business areas, driving innovation in artist-fan engagement and next-generation immersive music experiences. Previously, he served as Vice President and Global Head of Music at Roblox, where he pioneered immersive experiences for leading artists and brands that reached over 100 million fans, driving tens of millions of dollars of net new revenue for the music industry. Vlassopulos started his career as an executive at BMG and invested in the original Napster when he was at Bertelsmann. A seasoned entrepreneur, executive, and investor, he has a track record of delivering industry firsts that sit at the intersection of technology, music, gaming, entertainment, and marketing.
'Napster revolutionized digital music in the nineties, and now, with Infinite Reality, we're ready to do it again. 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 Jon Vlassopulos, CEO of Napster. 'Imagine stepping into a virtual venue to watch an exclusive show with friends, chat with your favourite artist in their own virtual hangout as they drop their new single, and be able to directly buy their exclusive digital and physical merch. With Infinite Reality's expertise in immersive 3D technology, we will transform Napster into a next-generation platform where fans don't just listen on their own—they experience music in entirely new ways. This isn't just a new chapter for Napster, it's the beginning of a more interactive and social music experience for the next era of the internet'.
'As we think about leading a sectoral shift from 2D web to 3D web, no other community is more critical than creators who are always at the forefront of leveraging innovation to express themselves and disrupt legacy systems', said Amish Shah, Chief Business Officer of Infinite Reality. 'The endurance of the Napster brand stands as a testament to its resilience, and we are honoured to build upon its pioneering spirit and unparalleled expertise in the music industry. 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'.
Founded in 1999, Napster forever changed the music industry with its peer-to-peer file sharing technology, giving fans their first access to digital music and digital music communities. After being acquired by Rhapsody, the first legal music streaming service licensed by all the recognized major record labels, Napster evolved into a leading independent digital music service, with access to more than 110 million tracks, available in 34 countries. Together, Infinite Reality and Napster plan to evolve the brand even further, becoming the leading immersive music platform for artists, fans, and curators.
Image Credit: Napster
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