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Napster sold to tech firm Infinite Reality for $207 million

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The music-streaming service Napster has sold for $207 million to the tech firm Infinite Reality.

Once a notorious music-pirating site causing trouble for major labels at the dawn of the new millennium, Napster now plays a minor role compared to giants like Spotify, YouTube, and Apple Music. However, Infinite Reality envisions reviving Napster as a platform that emphasizes active fan interaction over mere listening when it comes to music.

Music

On June 1, 1999, the peer-to-peer music sharing platform emerged, fulfilling an actual demand. Simultaneously, it introduced an uneasy moral standard in technology that continues to influence our current technological landscape.

2019 saw the establishment of Infinite Reality, a venture supported by several renowned figures in music and sports such as Steve Aoki and Imagine Dragons. This new entity subsequently acquired the platform from Algorand, a blockchain and cryptocurrency company, along with Hivemind Capital Partners. Over the years, numerous entities have attempted unsuccessfully to revamp Napster for contemporary music technology, including Best Buy and Rhapsody, the streaming service.

In simpler terms, the current CEO of Napster, Jon Vlassopulos, who previously led the music department at Roblox and invested in the initial version of Napster at Bertelsmann, will continue to guide the brand as it aligns with the company’s aspirations for live streaming, e-commerce, digital community management, and AI projects. As Vlassopulos stated, “The internet has evolved from desktop to mobile, from mobile to social, and now we are stepping into the immersive era. However, music streaming has essentially remained unchanged.

Hollywood Inc.

Those who have opted out of traditional cable television services (often referred to as ‘cord-cutters’) are once more confronting increasing subscription charges, following YouTube TV’s announcement that the monthly cost for its service will increase by approximately 14%, rising from $72.99 to $82.99, starting January next year.

For years, tech companies have drawn inspiration from Napster as they seek to disrupt established media sectors much like its creators, Shawn Fanning and Sean Parker, did.

Last year, Joseph Menn, author of “All The Rave,” a history of Napster, told The Times that Napster essentially spawned a new breed of entrepreneurial anti-heroes. These individuals viewed music as a stepping stone to greater marketing opportunities. Menn explained that Napster had a unique understanding of its customers because it had access to their music collections and knew what they were downloading. This allowed them to suggest, for instance, “Bobby is fond of Led Zeppelin and might be interested in AC/DC, here’s his email address, feel free to notify him when AC/DC releases a new album.” The key advantage, according to Menn, was this personalized approach.

However, the sales and updates come at a challenging period for technology and streaming services, as many youth are curtailing expensive streaming subscriptions due to concerns over inflation and economic downturn. Instead, they are opting for advertisement-supported free platforms or homemade digital content.

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2025-03-25 21:31

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