Guess who’s back, back again? Napster’s back, tell a friend.
Music-sharing service Napster will return from the dead with the help of extended reality (XR) and artificial intelligence (AI) company Infinite Reality. It bought the brand for $207 million and plans to revive it as a social and interactive music platform.
Infinite Reality still wants users to listen to music via Napster’s streaming service, but it plans to do much more with it. That includes holding virtual concerts, allowing users to collect together and share music in a virtual space, and integrating gamification features to entice users to stick around.
On top of all that, Infinite Reality intends to expand Napster’s services to include streaming of esports titles, such as Microsoft’s (MSFT) Call of Duty and Tencent’s (TCEHY) League of Legends. This will also allow it to offer sponsorships to brands that want to reach these fanbases.
Why Revive Napster for This Job?
While Napster has continued to exist and operate above the law since its dubious 1990s origins, the company has fallen out of favor with many users as more popular music streaming services dominate the market. However, it has experience in the sector that Infinite Reality wants.
That includes Napster CEO Jon Vlassopulos, who will continue to lead the brand after its acquisition. Vlassopulos’ experience includes serving as the former CEO of Roblox (RBLX), an online multiplayer game with built-in e-commerce systems and creator tools. His history with that company makes him a strong candidate to head up Infinite Reality’s XR plans for Napster.
Will Napster’s Return Threaten Streaming Services?
Plans to return Napster to its former glory sound great on paper but may not perform as well in reality. First off, virtual reality and metaverse plans have largely fallen to the wayside as interest was more muted than many companies expected. While Napster may carve out a niche audience with its XR platform, it’s unlikely to challenge the major streaming services, such as Spotify (SPOT), Sirius XM (SIRI), Tencent Music Entertainment (TME), and iHeartMedia (IHRT).
Of these music services, Tencent Music Entertainment has the best consensus rating at Strong Buy and strong upside potential at 11.61%.
