Napster, the brand once synonymous with music piracy, has been acquired by Infinite Reality for $207 million. The tech startup announced the purchase on Tuesday, revealing plans to revamp the streaming service into a social music platform focused on enabling artists to connect with fans and enhance their revenue streams.
“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, Napster’s CEO, in a blog post.
Infinite Reality intends to introduce virtual 3D spaces for fans to attend concerts, providing musicians and labels with opportunities to sell digital and physical merchandise. Furthermore, artists will gain access to a more comprehensive suite of metrics and analytics to better understand user behavior on the platform.
“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,” said Amish Shah, Infinite Reality’s chief business officer.
Originally launched in 1999 by Shawn Fanning and Sean Parker, Napster swiftly became the first significant peer-to-peer file-sharing application. The service ceased operations in the early 2000s following lawsuits from the record industry and the rock band Metallica over copyright infringements. Rhapsody acquired the brand in 2011 and relaunched it as a music streaming service.
