Napster acquired for new VR music platform - virtual events, 3D spaces, and creator tools

Napster has been acquired by Infinite Reality, a US-based VR company, for the sum of $207 million. The acquisition aims to leverage Napster's infrastructure as a subscription music service to build an immersive VR music platform for artists and fans.

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Credit: Napster

The purchase was announced on Tuesday, with the tech startup announcing its bold plans to usher in the 'immersive era' of music. Napster's CEO, Jon Vlassopulos, wrote in a blog post:

"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,"

Napster has quietly evolved over the past two decades. Originally launched in 1999 by Shawn Fanning and Sean Parker, it became the first major peer-to-peer file-sharing platform before legal pressure from the music industry forced it to shut down in the early 2000s. The brand was acquired by Rhapsody in 2011 and relaunched as a subscription-based music streaming service.

Since then, several companies have taken a shot at reviving the Napster brand - including MelodyVR in 2020 and a cryptocurrency firm in 2022. Now, Infinite Reality has its own vision: transforming Napster into a platform built around 3D virtual venues, merchandise sales, and new tools for artists to connect with fans and monetize their work.

"We can think of no better use case for our technology than putting it in the hands of music artists who are constantly pushing the boundaries of what's possible," said Infinite Reality's chief business officer, Amish Shah.

Vlassopulos, who became CEO of Napster in 2022, previously served as head of music at Roblox, where he led the company's virtual concert initiatives with artists like Lil Nas X and Twenty One Pilots.

The move lands as platforms like Spotify and Apple explore spatial and interactive audio, while Fortnite continues to lead in large-scale virtual music events. Few, however, have taken the full leap into persistent, immersive 3D environments. While specific details and timelines for Napster's transformation remain unclear, the venture could signal a more serious push into that space.