*In our best Milhouse from The Simpsons voice* Remember Napster? It’s back! In metaverse form.
What happened: Napster — the brand that pioneered internet music file sharing before being sued into oblivion — has been acquired by metaverse company Infinite Reality for US$207 million. The firm plans to turn Napster into an immersive virtual event platform.
- Where did this random company get the money to buy Napster, you might ask? Well, it raised $3 billion in January with backers including Live Nation and MGM.
Catch-up: Since initially shuttering in 2001, the Napster brand has had multiple owners, including Best Buy. In 2011, it merged with music streamer Rhapsody, which was renamed Napster in 2016. In 2022, it was acquired again by Web3 companies Hivemind and Algorand.
- Even before this sale, Napster was taking the metaverse route to differentiate itself from streaming giants, teaming up with a startup last year to create virtual hangouts.
Why it matters: While Napster’s streaming licensing deals are an attractive asset, it’s no secret that the main selling point is its recognizable name. Infinite Reality’s plan is part of a broader wave in recent years of companies reviving dead brands to cash in on nostalgia.
- Other recent examples of “zombie brands” include RadioShack being revived as an electronics brand and multiple unrelated companies licensing the Kodak name.
Bottom line: Even with 2000s nostalgia peaking, we’re skeptical that the new Napster will flourish.—QH