Napster, the once-notorious music service turned legal streaming platform, is reportedly failing to pay royalties to major distributors and record labels. According to Billboard, some rights holders claim payments are months behind, while others report delays exceeding a year.

Despite its historical significance, Napster currently represents less than 1% of overall streaming income for most rights holders. However, executives note that these payments remain significant for artists and labels they represent.

The company's recent history includes multiple ownership changes:

• 2016: Rhapsody rebranded as Napster
• 2020: MelodyVR acquired Napster for $70 million
• 2022: Hivemind Capital Partners and Algorand became new owners

Current CEO Jon Vlassopulos, former Head of Music at Roblox, has declined to comment on the payment delays. Rights holders are now considering several options:

• Removing their catalogs from Napster
• Refusing to deliver new releases
• Pursuing litigation, though legal costs could offset potential recoveries

Multiple executives report that Napster has been unresponsive to attempts to resolve these payment issues, with one noting that the company frequently cites "fundraising struggles" as justification for delayed payments.

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