Infinite Reality (iR), a digital media and e-commerce company with extended reality (XR), artificial intelligence (AI), and other immersive technologies, announced it has entered into a definitive agreement to acquire the iconic online music brand Napster for $207 million.
Napster—which runs as a fully licensed independent music service—has access to over 110 million high-fidelity tracks from the top artists in the world. And over the past two decades, Napster has paid over $1 billion to artists and songwriters worldwide.
Infinite Reality expects to transform Napster beyond streaming into a social and interactive music platform, leveraging its immersive technology and audience network of digitally native fans. This includes the millions engaged with iR’s entertainment assets like the Drone Racing League (DRL) and top esports organizations competing in titles like Call of Duty and League of Legends.
The newly reimagined Napster will differentiate itself from competitors by working as a social music platform that prioritizes active fan engagement over passive listening. This will allow artists to connect with, own, and monetize their fan relationships.
Through this acquisition, Napster and Infinite Reality plan to offer artists the tools to:
— Create branded 3D virtual spaces where fans can enjoy virtual concerts, social listening parties, and other immersive and community-based experiences
— Sell physical and virtual merchandise, exclusive digital content, and event tickets
— Utilize AI-powered customer service, sales, and community management agents for greater personalization
— Access enhanced analytics dashboards to better understand fan behavior
— Integrate gamification to increase fan engagement and loyalty
— Utilize iR’s audience network — including DRL and top esports teams — to seamlessly cross-promote and bridge fan communities
— Offer brands innovative sponsorships that connect with millions of young and digitally savvy consumers
As part of this acquisition, Napster CEO Jon Vlassopulos will continue working as CEO of Napster, and will take on a broader role for iR globally. Appointed CEO of Napster in 2022, Vlassopulos oversaw the company’s restructuring and led its evolution into new business areas, driving innovation in artist-fan engagement and next-generation immersive music experiences. Previously, he worked as Vice President and Global Head of Music at Roblox, where he pioneered immersive experiences for leading artists and brands that reached over 100 million fans, driving tens of millions of dollars of net new revenue for the music industry. Vlassopulos had started his career as an executive at BMG and invested in the original Napster when he was at Bertelsmann.
Originally founded in 1999, Napster forever changed the music industry with its peer-to-peer file sharing technology, giving fans their first access to digital music and digital music communities. After being acquired by Rhapsody, the first legal music streaming service licensed by all the recognized major record labels, And Napster evolved into a leading independent digital music service, with access to more than 110 million tracks, available in 34 countries. Together, Infinite Reality and Napster plan to evolve the brand even further, becoming the leading immersive music platform for artists, fans, and curators.
KEY QUOTES:
“By acquiring Napster, we’re paving a path to a brighter future for artists, fans, and the music industry at large. This strategic move aligns with Infinite Reality’s vision to lead an internet industry shift from a flat 2D clickable web to a 3D conversational one – giving all creators modern tools to better engage, monetize, and measure their audiences. I firmly believe that the artist-fan relationship is evolving, with fans craving hyper-personalized, intimate access to their favorite artists, while artists are searching for innovative ways to deepen connections with fans, and access new streams of revenue. We’re creating the ultimate music platform where artists can thrive in the next wave of digital disruption.”
– John Acunto, Co-Founder and CEO of Infinite Reality
“Napster revolutionized digital music in the nineties, and now, with Infinite Reality, we’re ready to do it again. 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. Imagine stepping into a virtual venue to watch an exclusive show with friends, chat with your favorite artist in their own virtual hangout as they drop their new single, and be able to directly buy their exclusive digital and physical merch. With Infinite Reality’s expertise in immersive 3D technology, we will transform Napster into a next-generation platform where fans don’t just listen on their own—they experience music in entirely new ways. This isn’t just a new chapter for Napster, it’s the beginning of a more interactive and social music experience for the next era of the internet.”
– Jon Vlassopulos, CEO of Napster
“We are delighted that Napster is now going to be a part of Infinite Reality, validating a new paradigm for music and media. We always believed in Jon’s long held vision and experience from Roblox that the next frontier of digital music and super fan experiences will be more immersive, more social, and more shoppable. Excited to see what they create together!”
– Steve Kokinos, co-founder of Algorand and Chairman of the Board of Napster
“As we think about leading a sectoral shift from 2D web to 3D web, no other community is more critical than creators who are always at the forefront of leveraging innovation to express themselves and disrupt legacy systems. The endurance of the Napster brand stands as a testament to its resilience, and we are honored to build upon its pioneering spirit and unparalleled expertise in the music industry. 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.”
– Amish Shah, Chief Business Officer of Infinite Reality
