Music service Napster acquired by 3D tech company Infinite Reality for $207 million

Napster, which started out as a music sharing service, is set for a revival and revamp after being acquired by 3D technology company Infinite Reality for $207 million on Tuesday.

According to a press release from Infinite Reality (iR), in addition to relaunching Napster as a music streaming service, the company aims to transform it into a “social music platform that prioritizes active fan engagement over passive listening, allowing artists to connect with, own, and monetize the relationship with their fans”.

Napster’s journey


Napster, founded in 1999, was a peer-to-peer file sharing platform that allowed users to share songs for free, making digital music more accessible.

However, the platform faced legal action later that year from the Recording Industry Association of America (RIAA) for distributing copyrighted material. In 2000, heavy metal band Metallica also sued Napster over the same issue.

Amid growing legal challenges, Napster was shut down in 2001 and filed for bankruptcy the following year.

In 2011, online music service firm Rhapsody bought Napster and relaunched it as a paid streaming service. Rhapsody then rebranded itself as Napster in 2016.

Infinite Reality’s ideas for Napster

The changes planned for Napster include the creation of branded 3D virtual spaces, where fans can enjoy concerts, social listening parties, and other immersive experiences. The platform will also offer physical and virtual merchandise, exclusive digital content, and event tickets, with AI-powered agents supporting personalised customer service, sales, and community management.

Additionally, Napster plans to provide enhanced analytics to better understand fan behaviour. It will incorporate gamification to boost engagement and loyalty, and leverage iR’s audience network across fan communities.

John Acunto, cofounder and CEO of Infinite Reality, said, “By acquiring Napster, we’re paving a path to a brighter future for artists, fans, and the music industry at large. 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.”