Infinite Reality (iR), a Norwalk-based developer of immersive virtual reality experiences, announced Tuesday it has acquired the online music service Napster for $207 million.
Napster, a fully-licensed independent music service, provides over 110 million tracks from the world’s top artists to its global subscribers. Over the past two decades, Napster has paid over $1 billion to artists and songwriters worldwide, maintaining itself as the longest-running digital music service.
Infinite Reality said it plans to transform Napster beyond streaming into a “social and interactive music platform” by leveraging iR’s immersive technology and audience network. This includes the millions of fans engaged with iR’s entertainment assets, which include the Drone Racing League (DRL) and top esports organizations competing in titles that include “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 monetize the relationship with their fans,” iR said in a news release.
Napster and iR plan to offer artists the tools to:
- Create branded 3D virtual spaces, where fans can attend virtual concerts, social listening parties and other immersive experiences.
- Sell both physical and virtual merchandise, exclusive digital content, and event tickets.
- Access enhanced analytics dashboards to better understand fan behavior.
- Integrate gamification to increase fan engagement and loyalty, and
- Leverage iR’s audience network to cross-promote and bridge fan communities.
- Founded in 1999 by Shawn Fanning and Sean Parker, Napster was the first peer-to-peer music file-sharing service that at one point had 85 million users. It was shut down two years later due to copyright infringement lawsuits and filed for bankruptcy in 2002.
In 2003 its assets were acquired by Roxio, which converted it into an online music store that was later acquired by Best Buy, which merged it with its Rhapsody streaming service. In 2016, Rhapsody was rebranded to Napster, and in 2022 it was acquired by Hivemind and Algorand.
As part of iR’s acquisition, Napster CEO Jon Vlassopulos will continue in that role while taking on a broader role for iR worldwide. Appointed CEO of Napster in 2022, Vlassopulos oversaw the restructuring of the company and led its evolution into new business areas.
