Napster Is “No Longer a Music Streaming Service” in Surprising Rebrand

January 3, 2026 2:08 pm

Today we’ve grown accustomed to having all of recorded music history at our fingertips, but in the early aughts, that concept still sounded ripped straight from a science fiction movie. Enter Napster, the file-sharing app that brought about a paradigm shift when it launched in 1999. Suddenly, people all over the globe could listen to music online for free. While fans loved it, many artists were understandably not thrilled—notably rock legends Metallica and rapper/producer Dr. Dre, both of whom sued the company in 2000.

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These lawsuits set off a domino effect that eventually bankrupted Napster, and the platform ceased operations in 2002. However, Napster was back in the headlines in March 2025 when Infinite Reality, a technology and entertainment company specializing in digital media and artificial intelligence, acquired it for $207 million. Following the apparent breakdown of that deal, however, Napster recently ceased all music streaming operations without warning.

Napster Announces Pivot to Artificial Intelligence

Digital Music News reported Jan. 2 that Napster users were actively listening to music on the platform when their service was interrupted by a splash screen.

“Napster is no longer a music streaming service. We’ve become an AI platform for creating and experiencing music in new ways,” a message explained on the screen. “That means the streaming catalog and playlists from the old app won’t work here. We know this can be frustrating, especially if you spent years building your playlists. To make things easier, you can export all your Napster playlists in just a few clicks.”

I understand that frustration.
Napster really changed everything, and since then it often feels like listeners pay more while owning less.
No one wants creators to lose their livelihoods—but users also deserve fair access and real ownership.
If AI pushes the industry to rethink…
— MytiMuffyn (@MytiMuffyn) January 3, 2026

Funding Mysteriously Evaporated in 2025

Last year, Infinite Reality revealed that an unnamed private investor had pledged about $3 million in funding to keep Napster afloat. In November, however, Forbes reported that both the investor and their money had seemingly vanished.

In an email sent to shareholders, CEO John Acunto claimed the company had been a “victim of misconduct.” Acunto took the reins at Napster after Infinite Reality’s acquisition.

Notably, both the Securities and Exchange Commission (SEC) and the Department of Justice have opened investigations into the disappearing deal.

Featured image by Joseph Menn/The Washington Post via Getty Images