The brands that were associated with music piracy before reappearing as a subscription music service are on sale to Infinite Reality for $207 million.
The tech startup announced on Tuesday that it had purchased Napstar in the hopes of converting its streaming service to a social music platform. Artists can now connect with their fans and monetize their works more.
“The internet has evolved from desktop to mobile and from mobile to social, and we are now in an immersive era. But streaming music remains pretty much the same. It’s time to rethink what is possible.”Blog post.
In plans to update Napster, Infinite Reality said it would create a virtual 3D space that would allow fans to participate in concerts and provide musicians and labels with the ability to sell digital and physical products. Artists also receive a wider range of metrics and analysis to better understand the behavior of platform users.
“We can think of no better use cases for our technology than putting it in the hands of music artists who are constantly pushing the boundaries of what is possible,” said Amish Shah, Chief Business Director, Infinite Reality.
Napster was launched in 1999 by Shawn Fanning and Sean Parker and quickly became the first important peer-to-peer file sharing application. It was closed in the early 2000s after record-breaking industry and popular rock band Metallica sued copyright violations. Rhapsody later bought the brand in 2011 and reopened it as a music streaming service.
This story was originally featured on Fortune.com.
