Infinite Reality has acquired Napster for $207 million to create a music-focused metaverse and expand opportunities for audience engagement.
The Deal Between Infinite Reality and Napster
Infinite Reality announced on March 25 that Napster will offer 'branded 3D virtual spaces' for virtual concerts and 'social listening parties', along with the ability to offer virtual merchandise. Napster CEO Jon Vlassopulos, who retained his role after the acquisition, noted the internet's evolution towards immersive experiences.
Napster's History and Transformations
Napster pioneered piracy, launching in 1999 as a P2P file-sharing service mostly for music. It shut down in 2001 following a court order over copyright infringement. Since then, the Napster brand has changed hands multiple times, becoming a music streaming service. In 2022, blockchain firm Algorand and crypto investment firm Hivemind acquired it.
Future Plans: The Music Metaverse
Infinite Reality plans to leverage AI for customer and community management and analytics dashboards to track fan behavior. John Acunto, co-founder and CEO of Infinite Reality, stated the team hopes to lead an 'internet industry shift from a flat 2D clickable web to a 3D conversational one'. The company hopes Napster will become the leading immersive music platform for artists and fans.
The acquisition of Napster by Infinite Reality aims to create a new music platform in the metaverse, enhancing audience involvement and offering new monetization opportunities for artists. The deal is expected to close in the coming weeks.
