Napster Snapped Up for $207 Million to Construct Music Metaverse – Decrypt

Napster, the model that when despatched the music trade into panic mode however then pale, was simply acquired for $207 million.

Infinite Actuality is shopping for the streaming service to remodel it right into a platform the place followers can hand around in digital areas, attend live shows, and purchase merch straight from artists, the digital actuality startup introduced.

The deal can be the best price ticket but for Napster, which has circulatedamong half a dozen corporations, together with Rovio to Algorand, since its controversial file-sharing days. Infinite Actuality is betting massive that music followers need extra than simply passive listening.

“By buying Napster, we’re paving a path to a brighter future for artists, followers, and the music trade at massive,” John Acunto, Co-Founder and CEO of Infinite Actuality, mentioned in an official assertion. “We’re creating the last word music platform the place artists can thrive within the subsequent wave of digital disruption.”

Present Napster CEO Jon Vlassopulos is staying on and increasing his position. Earlier than becoming a member of Napster in 2022, he headed music at Roblox the place he pioneered digital live shows that reached thousands and thousands of followers.

“Napster revolutionized digital music within the nineties, and now, with Infinite Actuality, we’re able to do it once more,” Vlassopulos mentioned. “The web has developed from desktop to cell, from cell to social, and now we’re coming into the immersive period. But, music streaming has remained largely the identical. It’s time to reimagine what’s doable.”

Napster’s journey from dorm room disruptor to company asset spans over 20 years. Based by Shawn Fanning and Sean Parker in 1999, the unique service let customers freely share MP3s earlier than authorized battles with file labels and artists like Metallica shut it down in 2001.

Since then, the model has bounced between house owners—Roxio in 2003, Finest Purchase in 2008, then Rhapsody in 2011. VR firm MelodyVR purchased it for $70 million in 2020, adopted by blockchain agency Algorand in 2022.

This shift to Web3 revived the corporate, which began working by itself $NAPSTER token and made some acquisitions to advertise a decentralized music service. “The hope is that we will deliver this innovation to the mainstream and get shoppers—common followers—simply doing it,” Napster CEO Jon Vlassopulos informed Decrypt in a 2023 interview. “So it’s nearly going again to that [point] the place you had collectible downloads that have been scarce, and it simply wasn’t on-chain.”

As we speak’s Napster is a completely licensed streaming service with 110 million tracks obtainable in 34 international locations. The corporate claims it has paid artists and songwriters over $1 billion.

Infinite Actuality plans to construct 3D digital areas the place followers can expertise live shows, be a part of listening events, and work together with artists. The platform may even promote bodily and digital merchandise, provide unique content material, and distribute occasion tickets straight.

“Think about stepping right into a digital venue to observe an unique present with buddies, chat along with your favourite artist in their very own digital hangout as they drop their new single,” Vlassopulos defined within the firm’s assertion.

Infinite Actuality will join Napster with its different leisure properties, together with the Drone Racing League and esports groups competing in video games like Name of Responsibility. This cross-promotion might assist artists attain youthful, gaming-focused audiences.

“We are able to consider no higher use case for our expertise than placing it within the fingers of music artists who’re always pushing the boundaries of what is doable,” mentioned Amish Shah, chief enterprise officer of Infinite Actuality.

Whether or not this newest reinvention lastly offers Napster a sustainable future stays to be seen. Earlier makes an attempt to revitalize the service have yielded blended outcomes, and metaverse-style music experiences have not precisely gone mainstream.

The acquisition is anticipated to shut within the coming weeks, with new options rolling out sooner or later as Infinite Actuality “evolves the model even additional.”

Edited by James Rubin