MelodyVR, the music tech startup, has completed the purchase of Napster for $70 million. The company first announced the acquisition of Napster during the month of August 2020. Despite MelodyVR’s poor financials in the first half of 2020, the acquisition has been completed. Napster will retain its name.
According to MelodyVR, the acquisition will pioneer music streaming and live virtual music reality all under one roof. Napster was one of the biggest and original disruptors of the music industry, with its beginnings in file-sharing piracy. Napster now has around 5 million subscribers and had a revenue of $113 million in 2020. MelodyVR meanwhile provides both purchasable and free experiences like 360° interactive studio videos and performances, which can be viewed on the app with or without a virtual reality headset.
“Over the coming year, we intend to leverage the existing Napster userbase, partners, and underlying technologies developed by the Company as part of the foundation to build a next-generation music platform. At present, music content consumption is extremely fragmented for fans, with audio, video and live-events spanning multiple-platforms with a consequent need for multiple subscriptions.” – Anthony Matchett, Founder, and CEO, MelodyVR.
“MelodyVR hoped to build a cross-platform, hybrid music service, delivering audio recordings and video content as well as renowned live-events, all through a single platform.” – Anthony Matchett, Founder, and CEO, MelodyVR.
In 2020, MelodyVR launched COVID-save initiatives to help musicians continue to perform. They have associated with Live Nation for organizing virtual shows for Brixton Academy.
MelodyVR, with this acquisition, hopes to boost revenue and drive the company to the next stage of their virtual plans as part of their company strategy.
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