Photo credit: www.entrepreneur.com
Napster first captured the music world’s attention over 25 years ago by enabling users to download MP3 tracks for free. At the height of its popularity in February 2001, it boasted approximately 80 million users.
However, following a series of legal battles, Napster ceased operations in July 2001. In 2016, the brand was revitalized as a music streaming service, offering access to a library of over 110 million songs for $11 per month, while also facilitating the payment of over $1 billion in royalties to artists and songwriters.
Now, a new ownership group intends to transform Napster, extending its reach beyond audio streaming into the immersive realm of virtual reality.
The technology firm Infinite Reality acquired Napster for $207 million recently. This strategic purchase aims to elevate Napster from a conventional music service to a platform that can capitalize on the burgeoning metaverse, accessible through virtual reality devices like the Meta Quest 3 or Apple Vision Pro.
Related: Billie Eilish, Elvis Costello, Jon Bon Jovi, and More Artists Rip Into ‘Predatory’ and ‘Catastrophic’ Use of AI in the Music Industry: ‘Assault on Human Creativity’
Infinite Reality intends to leverage the Napster brand to establish a variety of 3D spaces, or virtual environments, within the metaverse. These spaces could serve as venues for Napster artists to conduct virtual concerts or listening sessions, along with opportunities to sell merchandise directly to fans.
With a valuation of $12.25 billion, Infinite Reality sees immense value in Napster’s existing licenses for millions of songs as well as its storied name.
“There’s no better name than Napster to disrupt,” asserted Infinite Reality CEO John Acunto during an interview with CNBC.
Virtual concerts have already gained traction in the metaverse via platforms like Meta’s AmazeVR Concerts, although Napster has yet to host any virtual events.
Related: The Music Giant Behind Beyoncé, Harry Styles, and Adele Bars ChatGPT From Using Its Songs
Since its inception in 1999, Napster emerged as a groundbreaking file-sharing platform, attracting a vast user base. However, it faced significant legal challenges, notably when Metallica sued the company in 2000 for copyright violations, ultimately winning the case, which led to Napster’s shutdown of its file-sharing services.
As a streaming service, Napster struggled to keep pace with competitors such as Spotify and Apple Music. Reports indicate that by the end of 2020, Napster had roughly a million monthly active users, a stark contrast to Spotify’s impressive count of 345 million.
Founded in 2019, Infinite Reality secured $3 billion in funding in January from anonymous backers. That same month, the company also acquired the virtual shopping platform Obsess for an undisclosed amount.
Source
www.entrepreneur.com