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

While Napster represents less than 1% of overall streaming income for most rights holders, the accumulated unpaid royalties still amount to significant sums for artists and labels. CEO Jon Vlassopulos has declined to comment on these allegations.

The streaming service has undergone multiple ownership changes in recent years:

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

Rights holders are now considering several options:

• Removing their catalogs from Napster
• Withholding new releases
• Pursuing litigation for missed payments

Industry executives speaking anonymously report that Napster has cited fundraising struggles to explain payment delays. One executive noted, "Not only have they failed to pay royalties, but they have also been unresponsive when we've attempted to resolve these matters."

The company's current challenges mark a significant shift from its original incarnation as a piracy platform to its struggles as a legitimate streaming service competing in an increasingly crowded market.

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