Adapted by:
John Tones
WriterI've been writing about culture for twenty-something years and, at Xataka, I cover everything related to movies, video games, TV shows, comics, and pop culture.
Alba Mora
WriterAn established tech journalist, I entered the world of consumer tech by chance in 2018. In my writing and translating career, I've also covered a diverse range of topics, including entertainment, travel, science, and the economy.
Infinite Reality, a company specializing in immersive technology, has struck a massive deal by acquiring Napster for $207 million. The company has ambitious plans to compete with existing streaming platforms by leveraging its expertise to introduce virtual 3D concerts.
Goodbye, old Napster. Generation X and older millennials will remember the days of Napster, Soulseek, and other early peer-to-peer platforms. Napster was especially controversial, becoming a scapegoat for the rapidly growing early Internet. It also challenged a music industry that had yet to figure out how to monetize digital content. Notably, artists such as Metallica, Madonna, and Dr. Dre sued Napster in 2000, which ultimately led to the company’s bankruptcy in 2002.
Hello, new Napster. The Napster brand has undergone several transformations and changed owners several times. Best Buy was probably the most notable owner before selling it to Rhapsody in 2011. Rhapsody sought to capitalize on Napster’s established name to expand its business. In recent years, Napster has evolved into a legal streaming service similar to Spotify. It’s available in 34 countries and boasts a catalog of 110 million songs.
Infinite Reality enters the scene. Infinite Reality recently acquired Napster to transform it into “a social music platform that prioritizes active fan engagement over passive listening.” This new direction aims to incorporate more social media features than competitors like Spotify. Napster’s vision is for artists to “deepen connections with fans, and access new streams of revenue.” Some of the company’s ideas include creating official 3D virtual spaces for virtual concerts, social listening parties, merchandise, event tickets, and AI-powered customer service.
Uncertainties. However, Infinite Reality’s vision for Napster is surrounded by doubts. A significant question is how the company plans to implement these innovations and whether they make sense for the platform. While the idea of virtual spaces may appeal to some users and investors, it might also come across as complex and odd to others.
Notably, Infinite Reality CEO Jon Vlassopulos took the helm in 2022 after overseeing the music segment at Roblox. This billion-dollar company had aspirations of creating a cultural metaverse but struggled to gain traction. Same old, same old?
Further doubts. The project’s economic viability remains uncertain. Infinite Reality raised $3 million in a recent investment round, but the company hasn’t disclosed the source of the funds. Additionally, the ambitious use of AI and augmented reality may face challenges in gaining acceptance from the music industry. In the end, the sector isn’t known for quickly embracing big changes. The original Napster is a prime example of that.
Image | James Allenspach
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