Napster is acquired by virtual reality company Infinite Reality for about $310 million
Napster, which started as a music file-sharing service using P2P technology and started as a pure music distribution service in 2016 after going bankrupt and being acquired, has been acquired by Infinite Reality, a company developing augmented reality and AI technologies, for $207 million (approximately 31 billion yen) on March 25, 2025.
Infinite Reality Acquires Iconic Music Service Napster
Napster pioneered music sharing 25 years ago, bought for $207 million
Napster started as a file sharing service in 1999, but was shut down in 2001 after copyright lawsuits. It was later acquired by Roxio and relaunched as a music distribution service called 'Napster 2.0' in 2003. The service was discontinued after it was acquired by Rhapsody in 2011, but the 'Napster' brand was revived in 2016 and continues as a music distribution service.
As of 2025, Napster distributes more than 110 million songs in 34 countries. Infinite Reality said in conjunction with the acquisition that it would 'expand and restructure Napster, leveraging our virtual reality and AI tools and user network to transform Napster into a social and interactive music platform that goes beyond the scope of a streaming service.' As a result, Napster will be reborn as a social networking-style service with the ability to interact with artists and fans, rather than just a music distribution service.
The following features will be available to artists in the future:
- Creating a virtual space where people can hold concerts and parties where they can listen to music in groups
The ability to sell virtual goods in addition to physical goods, as well as digital content and event tickets
-AI-powered customer service, sales and community management agents
- Enhanced analytics dashboard
・Services that utilize
- Promotion of music using Infinite Reality's network of viewers, such as drone racing leagues and e-sports
Sponsorships that connect with millions of digitally savvy young people
'Our acquisition of Napster paves the way to a brighter future for artists, fans and the entire music industry,' said John Akunt, CEO of Infinite Reality. 'I believe the relationship between artists and fans is evolving - fans crave deeper connections with their favorite artists, and artists are looking for innovative ways to better connect with their fans and access new revenue streams. We are creating the ultimate music platform so artists can thrive in the digital world.'
'Napster revolutionized digital music in the '90s. The Internet has evolved from desktop to mobile, and from mobile to social, and we're now in an immersive era. But music streaming has remained largely unchanged. Imagine stepping into a virtual venue to watch a live show with friends, chatting with your favorite artists while listening to their new songs in a virtual space, and buying exclusive digital merchandise directly from the artist. With Infinite Reality's immersive 3D technology, we're transforming Napster into a next-generation platform,' said Napster CEO John Vlasopoulos.
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