Napster, the former piracy platform turned legitimate streaming service, is reportedly falling behind on royalty payments to major music distributors and record labels. According to Billboard, some rights holders claim payment delays ranging from several months to over a year.

Current CEO Jon Vlassopulos has declined to comment on these allegations. Industry executives speaking anonymously cite Napster's ongoing fundraising challenges as the company's typical excuse for delayed payments.

Despite these issues, Napster remains a minor player in the streaming industry, generating less than 1% of overall streaming revenue for most rights holders. However, these delayed payments still represent significant sums for artists and labels.

Key company developments:

• 2016: Rhapsody rebranded as Napster
• 2020: MelodyVR acquired Napster for $70 million
• 2022: Hivemind Capital Partners and Algorand became new owners
• 2022: Jon Vlassopulos appointed as CEO after serving as Roblox's Head of Music

Rights holders are now considering two options: removing their catalogs from Napster, refusing to deliver new releases, or pursuing litigation for missed payments. However, legal costs could potentially exceed recovery amounts.

Multiple executives report that beyond payment issues, Napster has been unresponsive to attempts at resolving these matters, creating additional friction with industry partners.

Related Articles

Previous Articles