Napster, the once-disruptive music-sharing service that revolutionized the record industry, has been purchased by Infinite Reality. They wrapped it up for a stunning $207 million. The acquisition signals a new chapter for Napster, as the company aims to build its music streaming platform directly into the metaverse. Infinite Reality envisions creating mood-inspiring immersive, virtual 3D environments. Here, music fans can meet, connect, attend virtual concerts, and join communal listening parties all together.
Created in 1999 by Shawn Fanning and Sean Parker, Napster became the first major, widely used, peer-to-peer file-sharing program. It empowered everyday PC users to share MP3 files with their friends and neighbors, which they could then play on media players like Winamp. Naturally, they constructed huge libraries of digital music without paying a cent. Consequently, Napster became incredibly popular overnight.
Napster’s ascendance awakened an unprecedented and aggressive war from the record industry. They claimed that the service encouraged rampant copyright infringement. Filing the first lawsuit against Napster, the hard rock band Metallica led the charge. Shortly thereafter, the Recording Industry Association of America (RIAA) piled on with its own lawsuit.
Confronted with increasing successful legal challenges, Napster was forced to close down in 2001, and soon thereafter declared bankruptcy in 2002. Despite its tumultuous early legacy, the Napster brand has lived on.
Since 2016 Napster’s undergone quite a change, going legit as a music streaming service. For a low monthly subscription fee of $11, you too can have on-demand access to millions of licensed tracks. The platform has exclusive official licenses to livestream a huge catalog of music.
Infinite Reality's acquisition marks a strategic move to leverage Napster's brand recognition and music catalog within the burgeoning metaverse. The studio is focused on building new types of virtual entertainment experiences, with music at the core.
We just don't see anybody in the streaming space creating spaces for music. - John Acunto
Infinite Reality wants to tap Napster for its music-related marketing efforts in the metaverse.
I think there's no better name than Napster to disrupt. - John Acunto
The acquisition creates a complete-circle moment for Napster. It has come a long way since its once disruptive origins to now be an indisputable platform poised to define the future of music consumption in the digital era.
