Innovation company Infinite Reality is acquiring iconic online music brand Napster for $207 million. The company said it will “expand and reimagine Napster, empowering artists with new audience monetisation and engagement capabilities, underpinned by iR’s immersive technology, AI-powered tools, and audience network.”
Napster, an independent music service, currently delivers over 110 million high fidelity tracks from artists to its global subscriber base. Infinite Reality plans to transform Napster 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, such as the Drone Racing League (DRL) and esports organisations competing in titles like Call of Duty and League of Legends.
IR said the newly-reimagined Napster will differentiate itself by serving as a social music platform that “prioritises active fan engagement over passive listening, allowing artists to connect with, own, and monetise their relationship with fans.”
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 both physical and virtual merchandise, exclusive digital content, and event tickets
Leverage AI-powered customer service, sales, and community management agents
Access enhanced analytics dashboards to better understand fan behaviour
Integrate gamification to increase fan engagement and loyalty
Leverage iR’s audience network — including DRL and top esports teams — to seamlessly cross-promote and bridge fan communities
Offer brands sponsorships that connect with young, digitally savvy consumers
“By acquiring Napster, we’re paving a path to a brighter future for artists, fans, and the music industry at large,” said John Acunto, co-founder and CEO of Infinite Reality. “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, monetise, and measure their audiences. I firmly believe that the artist-fan relationship is evolving, with fans craving hyper-personalised, intimate access to their favourite artists, while artists are searching for innovative ways to deepen connections with fans, and access new streams of revenue.”
As part of this acquisition, Napster CEO Jon Vlassopulos will continue as CEO of Napster, and will take on a broader role for iR globally. He added: “Napster revolutionised 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.”
Building on this theme, he said: “Imagine stepping into a virtual venue to watch an exclusive show with friends, chat with your favourite 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 is the beginning of a more interactive and social music experience for the next era of the internet.”
Founded in 1999, Napster changed the music industry with its peer-to-peer file sharing technology, giving fans access to digital music and digital music communities. After being acquired by Rhapsody, the first legal music streaming service licensed by all the recognised major record labels, Napster evolved into a leading independent digital music service, with access to more than 110 million tracks, available in 34 countries.
