Napster to become a music-marketing metaverse firm after being sold for $207M
Infinite Reality, a media, ecommerce, and marketing company focused on 3D and AI-powered experiences, has entered an agreement to acquired Napster. That means that the brand originally launched in 1999 as a peer-to-peer (P2P) music file-sharing service is set to be reborn again. This time, new owners are reshaping the brand into one focused on marketing musicians in the metaverse.
Infinite announced today a definitive agreement to buy Napster for $207 million. The Norwalk, Connecticut-based company plans to turn Napster into a “social music platform that prioritizes active fan engagement over passive listening, allowing artists to connect with, own, and monetize the relationship with their fans.” Jon Vlassopulos, who became Napster CEO in 2022, will continue with his role at the brand.
Since 2016, Napster has been operating as a (legal) streaming service. It claims to have over 110 million high-fidelity tracks, with some supporting lossless audio. Napster subscribers can also listen offline and watch music videos. The service currently starts at $11 per month.
Since 2022, Napster has been owned by Web3 and blockchain firms Hivemind and Algorand. Infinite also develops Web3 tech, and CEO John Acunto told CNBC that Algorand’s blockchain background was appealing, as was Napster’s licenses for streaming millions of songs.
To market musicians, Infinite has numerous ideas for helping Napster users interact more with the platform than they do with the current music streaming service. The company shared goals of using Napster to offer “branded 3D virtual spaces where fans can enjoy virtual concerts, social listening parties, and other immersive and community-based experiences” and more “gamification.” Infinite also wants musicians to use Napster as a platform where fans can purchase tickets for performances, physical and virtual merchandise, and “exclusive digital content.” The 6-year-old firm also plans to offer artists abilities to use “AI-powered customer service, sales, and community management agents” and “enhanced analytics dashboards to better understand fan behavior” with Napster.
