Infinite Reality Purchases Napster for $200M to Develop Social Music Platform and Virtual Concerts

Napster. Now there’s a blast from the past, a name many might not have heard for years, if not decades. Recently, Infinite Reality, an immersive web firm, revealed that it has acquired this iconic brand for a cool $207 million.

After securing a hefty $3 billion investment in January, Infinite Reality is gearing up to transform the Napster music streaming service into a dynamic “social music platform.” This ambitious plan includes the creation of branded 3D virtual spaces designed for virtual concerts and listening parties.

Beyond that, they’ve got even more up their sleeves. Napster will soon offer an array of physical and virtual merchandise, exclusive digital content, and tickets to exciting events.

John Acunto, the co-founder and CEO of Infinite Reality, shared his enthusiasm for the acquisition, saying, “By acquiring Napster, we’re paving a path to a brighter future for artists, fans, and the music industry at large.” He believes this move perfectly aligns with the company’s broader vision of shifting from a traditional, flat web experience to a rich, 3D interactive one. The goal? To equip creators with cutting-edge tools to engage, monetize, and better understand their audiences.

The transition will continue under the leadership of CEO Jon Vlassopulos, who brings experience from his time at Roblox. He imagines a platform where fans can connect with artists in immersive 3D spaces, reshaping how we consume music into a more social and engaging experience.

Founded in 2019, Infinite Reality is already known for iR Studio, their flagship product known for crafting immersive websites filled with social virtual environments and avatars. While their iR Engine supports WebXR, it’s not yet active in iR Studio. However, there’s a chance that Napster could embrace WebXR in the future, allowing VR headsets with WebXR browsers to tap into the service—though that’s still speculative for now.

Napster’s brand has certainly seen its fair share of changes since its 2002 bankruptcy fallout, prompted by unlicensed peer-to-peer music sharing that ticked off bands like Metallica. Over the years, a string of companies have taken a turn with Napster, attempting to capitalize on its widespread appeal, with the latest iteration being a subscription-based streaming platform.

It’s worth noting that Infinite Reality isn’t the first XR-focused company to acquire Napster. Back in August 2020, MelodyVR from London bought Napster for $70 million, dreaming of bringing virtual reality concerts to users. Before Infinite Reality’s purchase, Napster had been owned by the blockchain outfit, Algorand, which aimed to decentralize the music landscape.

Such are the ever-evolving chapters of Napster’s storied journey, continuing to adapt and reinvent itself in a rapidly changing digital world.