Napster has survived through numerous lawsuits, including from rock band Metallica, rapper and producer Dr. Dre and the Recording Industry Association of America.
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Napster, formerly a peer-to-peer file-sharing application founded in 1999, has been sold to Infinite Reality, a digital media and e-commerce company, for $207 million.
Infinite Reality announced the deal on Tuesday, saying it plans to “expand and reimagine Napster” into a social and interactive music platform that empowers artists by using audience monetization and engagement tools, immersive technology, artificial intelligence, and its audience network.
“By acquiring Napster, we’re paving a path to a brighter future for artists, fans, and the music industry at large,” John Acunto, co-founder and CEO of Infinite Reality, said on Tuesday. “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… We’re creating the ultimate music platform where artists can thrive in the next wave of digital disruption.”
Napster, which became an independent digital music service, has offered over 110 million songs from some of the world’s top artists to its global subscriber base. According to Infinite Reality, Napster has paid over $1 billion to artists and songwriters worldwide over the past two decades.
Infinite Reality’s entertainment assets include the Drone Racing League and esports organizations competing in popular video game titles, such as “Call of Duty” and “League of Legends.”
What will Napster look like going forward?
Napster’s acquisition will not change the music service’s leadership as Jon Vlassopulos will continue as CEO while taking on a broader role for Infinite Reality globally. Vlassopulos was appointed CEO of Napster in 2022.
“Napster revolutionized digital music in the nineties, and now, with Infinite Reality, we’re ready to do it again,” Vlassopulos said on Tuesday. “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.”
“Imagine stepping into a virtual venue to watch an exclusive show with friends, chat with your favorite artist in their own virtual hangout as they drop their new single, and be able to directly buy their exclusive digital and physical merch.”
Napster survived copyright lawsuits, bankruptcy
Throughout the late 1990s and early 2000s, Napster faced several lawsuits from musical artists and record labels, including rock band Metallica, rapper and producer Dr. Dre, A&M Records and the Recording Industry Association of America (RIAA). The lawsuits were filed over leaked songs and copyright infringement claims.
In the RIAA’s 1999 copyright lawsuit against Napster, the music recording company described the service as “a safe haven for piracy,” as detailed in “All the Rave: The Rise and Fall of Shawn Fanning’s Napster” by Joseph Menn. The RIAA’s suit sought $100,000 for each copyright-protected song shared over the network, or around $100 million, The Wall Street Journal reported at the time.
The lawsuits resulted in Napster closing down its service in July 2001. The following year, the service filed for bankruptcy and sold its assets to software maker Roxio, which brought it back in 2003 as a subscription service. Napster also settled with songwriters and music publishers, agreeing to pay them $26 million for past and unauthorized uses of music.
