Infinite Reality Acquires Napster for $200M to Create Social Music Platform & Virtual Concerts

Napster. Now there’s a name you haven’t heard in a few years… or more likely decades. Now, immersive web company Infinite Reality announced it’s acquired the brand for $207 million.

Having just closed a $3 billion investment in January, Immersive Reality says the Napster music streaming service will soon include a “social music platform” that will include branded 3D virtual spaces for virtual concerts and listening parties.

Additionally, the company says Napster will also sell both physical and virtual merchandise, exclusive digital content, and event tickets.

“By acquiring Napster, we’re paving a path to a brighter future for artists, fans, and the music industry at large,” said John Acunto, Infinite Reality co-Founder and CEO. “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, monetize, and measure their audiences.”

CEO Jon Vlassopulos, formerly of Roblox, will continue leading Napster, noting he envisions a next-generation platform where fans can interact with artists in 3D virtual spaces, making music consumption more social and immersive.

Founded in 2019, Infinite Reality’s flagship product is iR Studio, an engine for building immersive websites, replete with social virtual environments and avatars. iR Studio sites support WebXR by default, meaning any XR headset that supports WebXR can access it directly through a web browser.

While the company hasn’t said as much, we’d expect Immersive Reality to leverage iR Studio in future Napster virtual concerts, which would ostensibly include support for Quest and PC VR headsets.

This isn’t the first time the Napster brand has changed hands since its 2002 bankruptcy, which was due to its platform allowing for unlicensed P2P sharing of music, attracting the ire of rock band Metallica. Over the years, the company has been acquired by a laundry list of companies that hoped to leverage the brand’s wide appeal, most recently turning the one-time music sharing platform into a subscriber-based music streaming platform.

Interestingly, Immersive Reality also isn’t the first XR-focused company to purchase Napster either. In August 2020, London-based virtual concert company MelodyVR acquired Napster for $70 million, which hoped to bring immersive video concerts to VR headset users. Prior to the Immersive Reality acquisition, Napster’s most recent owner was blockchain company Algorand, which hoped to decentralize music.