How Napster Inspired a Generation of Rule-Breaking Entrepreneurs (fastcompany.com)
- Reference: 0178557438
- News link: https://yro.slashdot.org/story/25/08/04/0146202/how-napster-inspired-a-generation-of-rule-breaking-entrepreneurs
- Source link: https://www.fastcompany.com/91362947/napster-is-back-betting-big-on-ai
> In March, it [3]sold for $207 million to Infinite Reality, an immersive digital media and e-commerce company, which also rebranded as Napster last month. Since 2020, other owners have included a British VR music startup (to create VR concerts) and two crypto-focused companies that bought it to anchor a Web3 music platform. Napster's launch follows a growing number of attempts to drive AI adoption beyond smartphones and laptops.
And tonight the Washington Post re-visited the legacy of Napster's original mp3-sharing model, arguing Napster " [4]inspired successive generations of entrepreneurs to risk flouting the law so they could grow enough to get the laws changed to suit them, including Airbnb and Uber."
> "Napster to me embodies the idea that it is better to seek forgiveness than permission," said Mark Lemley, director of Stanford Law School's Program in Law, Science & Technology. "It didn't work out well for Napster or for many of the others who got sued, but it worked out very well for everyone else — users, and eventually the content industry, too, which is making record profits...." [Napster co-founder Sean] Parker later advised Spotify, and Napster marketing chief [5]Oliver Schusser is now Apple's vice president for music.
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> Although many users saw Napster as an extension of rock-and-roll rebellion, that was not the company's real plan. First Fanning's majority-owning uncle, and then venture capital firm Hummer Winblad, wanted the start-up to leverage its knowledge of individual music consumers to make lucrative deals with the labels, according to internal documents this reporter found in researching a [6]book on Napster . They warned that if no agreement were reached and Napster failed, more decentralized pirate services would take the audience and offer the labels nothing.
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> But settlement talks failed. The litigation blitz also took down a Napster competitor called Scour, which [7]a young Travis Kalanick had joined shortly after its founding. Kalanick later created Uber, dedicated to overthrowing taxi regulations.
The article concludes that "Now it is Microsoft, Meta, Apple and Google, among the largest companies in the world, bankrolling the consumption of all media.
"They, too, have absorbed Napster's lessons in realpolitik, namely to build it first and hope the regulators will either yield or catch up."
[1] https://slashdot.org/story/25/07/08/1927222/music-pioneer-napster-tries-again-this-time-with-ai-chatbots
[2] https://www.fastcompany.com/91362947/napster-is-back-betting-big-on-ai
[3] https://www.cnbc.com/2025/03/25/napster-pioneered-music-sharing-25-years-ago-bought-for-207-million-.html
[4] https://www.washingtonpost.com/technology/2025/08/02/napster-reunion-silicon-valley/
[5] https://variety.com/exec/oliver-schusser/
[6] https://www.amazon.com/All-Rave-Shawn-Fannings-Napster-ebook/dp/B0052YWXGS/
[7] https://www.washingtonpost.com/business/economy/why-travis-kalanick-didnt-survive-uber/2017/06/21/8ecb98d6-51d3-11e7-be25-3a519335381c_story.html
Or when regulators... (Score:2)
Or when regulators fine you $100 million (that you appeal) after making a $1 billion on the "app" you a fined for building it.
JoshK.
I am "old school", but a rule broken. (Score:5, Interesting)
A rule broken should be a rule punished. I think tech has been a run away criminal organization for many years. There are too many monopolies, too many out right criminals, too many crypto scams. I should give a list of examples, that is my tendency. There are many. Now they are the Oligarchs, sticking their fingers into every law that is made. That is the real "conspiracy" here, is that someone can build a criminal enterprise, and then turn around, buy a few politicians, buy a lunch at the White House, and then their illegal shit suddenly becomes ok.
Searching for a Narrative (Score:4, Insightful)
This article is a classic example of trying to create a tight narrative thread around events when in reality they are only connected by that thread very loosely.
I think the more important lesson here is that valuation will often be measured in terms of things like users, name recognition, and appearing in the press rather than things like profit, growth, or revenue. Basically, the goal is to make your business "a thing" and then figure out how to monetize it in stage two. That's what Napster has in common with Google, Uber, AirB&B, OpenAI, etc. Those are just the successes—the Theranoses and WeWorks are the more common examples (without that level of notoriety).
As far as "rule breaking," I don't know why Napster would be the genesis of "rule breaking entrepreneurs." It seems to me that the willingness to break rules and take crazy risks has always been common among entrepreneurs. You could go back to the robber barons of the industrial age. Entrepreneurs completely disregarding legal, ethical, and practical considerations seems to be pretty common and always has been, regardless of industry.
Re: (Score:2)
I have spent many years learning about the robber barons of the 1900's, and have seen many parallels now. History rhymes.
Napster and Copyright (Score:2)
The thing Napster showed is that people see copyright as optional and you can't enforce it against the masses.
If you start enforcing copyright as it is written into law, people start hating you and find ways to evade. Since Napster filesharing evolved, but never vanished, no matter how much DRM, legal threats, etc. companies use. Find an effective way to enforce copyright and you'll get a revolution. People do not follow copyright, they only tolerate it where it does not matter (I have the money, I just buy
Now it is Microsoft, Meta, Apple and Google? (Score:3)
Really?
If anything, Napster told us another story - no matter how innovative and revolutionary you are, without a proper institutional backing you'll get devastated very quickly.
The successful entrepreneurs read the signs and sold out to all of the above instead of embracing the "asking for forgiveness instead of permission startup" bullshit.
Having Zuck pay you a hundred million and shield you from litigation with his CIA-sponsored outfit is nowhere near to what Napster was.
Re: (Score:2)
Also... It shows us how those who are in control of equity see value primarily in cynical use of brand recognition, and that a brand need not actually have any real capacity to ever earn again to be passed around as a commodity like it was an art holding... just ever depreciating in value.
Ironically, even a piece like this sorta-complaining that Napster's brand isn't really attached to anything meaningful is still doing part of the work to keep a dead brand in global consciousness so that it can be exploite
Re: (Score:2)
Having Zuck pay you a hundred million and shield you from litigation with his CIA-sponsored outfit is nowhere near to what Napster was.
Haaar .. nice one ...