First Limewire, now Napster. Algorand’s interesting approach to Web2 and Web1.
- Algorand Acquires Napster
- Napster Nostalgia
Algorand Acquires Napster
It was announced yesterday that Hivemind Capital and Algorand have acquired Napster, the classic Web2 music platform. If you’re too young to recall Napster, it was the Spotify of 2002. While many see Napster as ancient history, their platform is still up and running. Their streaming platform faces the heavyweights of Spotify and Apple Music, so the 2022 Napster needs a serious reboot to capture its 2002 glory.
BREAKING: @HivemindCap and @Algorand today announced the acquisition of @Napster, to once again revolutionize the music industry by bringing blockchain and Web3 to artists and fans. Music industry veteran Emmy Lovell has been named interim CEO. Stay tuned for further details. pic.twitter.com/y5NEI1oiRA
— Hivemind (@HivemindCap) May 10, 2022
Not long ago, Algorand also announced that Limewire, another Web2 music platform directly comparable to Napster, will be building on their chain. Limewire is launching an NFT-related product on Algorand and raised million in a token sale, which included some big names such including Arrington Captial, Kraken ventures, Crypto.com, and the legendary artist himself Deadmau5. It appears Algorand may be playing a 5D chess strategy with these two unique and peculiar moves.
We have raised USD $10.4M in a private token sale. Our investors include:
Learn more:https://t.co/cIJ2ZtvR7R pic.twitter.com/gBRouKTcS2
— LimeWire (@limewire) April 21, 2022
Founder of Hivemind Matt Zhang said of the announcement and his involvement in both the Limewire funding and Napster acquisition: “One of our core theses is in the value in nostalgic web1 and 2 brands combined with the technological potential of web3.” Details are still fuzzy about the grand scheme behind this strategy by Algorand, and the numbers behind the Napster acquisition were not provided. As noted below by Hivemind’s chief Matt Zhang, Napster is more alive than many would care to imagine.
4) “Proforma revenues from the Napster streaming service and Melody VR service combined totalled $96 million in 2020 and during January 2021 generated monthly revenues of c. $8m.” https://t.co/34FFIGdA1I
— Matt Zhang (@zhang_matt) May 10, 2022
In fact, BMW Music is powered by Napster. The famous luxury car company uses Napster’s “integrated premier streaming audio service, brings European BMW owners an innovative in-car service that needs no setup, no login, and no extra device. Drivers and passengers have one-click access to 60 million songs and more than 20,000 audiobooks through the vehicle’s entertainment system.” ALDI, a massive German retailer, also utilizes Napster via “a “full stack” engineering music solution.
Napster is clearly not just involved in music streaming direct to consumer, they offer business solutions through custom software and music engineering stacks. According to their website “over 20 mobile carriers and 400+ home and auto partners using Napster to power their music experiences.” As noted below by Algorand executive Steve Kokinos, “digital ownership” will help Algorand bring Napster to the forefront of Web3.
6/ @Napster will use Web3 to create new revenue streams for artists, economic incentives for fans, and new ways to experience content.
— Steven Kokinos (@stevekokinos) May 11, 2022
While the market has been in a dreadful state, it is important to watch the chains and crypto protocols that are making meaningful gains in terms of development, partnerships, and innovations. This will be a time for investors to see just who is here to build, and who was here to bilk. Through Algorand, you may see the Web1 companies of yesteryear become the Web3 companies of tomorrow.
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