Napster has been acquired by Infinite Reality for $207 million.
Launched in 1999, Napster disrupted the traditional music business by enabling peer-to-peer sharing of MP3 files, forcing the industry to confront the future of digital consumption. The controversial file-sharing service helped pioneer ecommerce in the music industry by introducing millions to digital music distribution.
Infinite Reality is a company focused on immersive media technologies including extended reality (XR) and artificial intelligence (AI).
Napster acquired by Infinite Reality
Although legal challenges led to Napster’s initial shutdown, the brand later relaunched as a legitimate streaming service. It also helped lay the groundwork for the online music economy, paving the way for platforms like iTunes, Spotify, and others.
Over the last two decades, Napster has evolved into a fully licensed streaming platform with a global subscriber base and a catalog of more than 110 million tracks. The service has paid over $1 billion out to artists and songwriters.
Infinite Reality said it plans to transform Napster into a social and interactive music platform. The acquisition is aimed at integrating Napster into Infinite Reality’s broader ecosystem of digital entertainment assets, including the Drone Racing League and esports organizations that compete in games such as Call of Duty and League of Legends.
The deal highlights Infinite Reality’s strategy to leverage legacy media brands in building out immersive and community-driven digital platforms. Napster, one of the first platforms to demonstrate the commercial potential of digital music, now faces a new role at the intersection of streaming, social media, and immersive technology.
Sign up
Sign up for a complimentary subscription to Digital Commerce 360 B2B News. It covers technology and business trends in the growing B2B ecommerce industry. Contact Mark Brohan, senior vice president of B2B and Market Research, at [email protected]. Follow him on Twitter @markbrohan. And follow us on LinkedIn, X (formerly Twitter), Facebook and YouTube.
Favorite