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Napster to become a music-marketing metaverse firm after being sold for $207M

Mar 26, 2025 - arstechnica.com
Infinite Reality, a media, ecommerce, and marketing company specializing in 3D and AI-powered experiences, has announced a definitive agreement to acquire Napster for $207 million. Originally launched in 1999 as a peer-to-peer music file-sharing service, Napster is set to be transformed into a social music platform focused on active fan engagement in the metaverse. The Norwalk, Connecticut-based Infinite plans to leverage Napster's existing licenses and streaming capabilities to create a platform where artists can connect with, own, and monetize their relationships with fans. Jon Vlassopulos will continue as CEO of Napster, which has been operating as a legal streaming service since 2016, boasting over 110 million high-fidelity tracks.

Infinite Reality aims to enhance user interaction on Napster by offering branded 3D virtual spaces for virtual concerts, social listening parties, and other immersive experiences. The company also plans to incorporate gamification and provide musicians with opportunities to sell tickets, merchandise, and exclusive digital content. Additionally, Infinite intends to equip artists with AI-powered customer service, sales, and community management tools, as well as enhanced analytics dashboards to better understand fan behavior. The acquisition aligns with Infinite's Web3 technology development and its interest in Algorand's blockchain expertise, which previously owned Napster along with Hivemind.

Key takeaways:

  • Infinite Reality has acquired Napster for $207 million, aiming to transform it into a social music platform focused on active fan engagement in the metaverse.
  • Napster, originally a P2P music file-sharing service, has been operating as a legal streaming service since 2016, offering over 110 million high-fidelity tracks.
  • Infinite plans to use Napster to offer branded 3D virtual spaces for virtual concerts, social listening parties, and other immersive experiences, along with gamification elements.
  • Artists on Napster will have access to AI-powered tools for customer service, sales, and community management, as well as enhanced analytics to better understand fan behavior.
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