Napster, the once-infamous music service turned legal streaming platform, is reportedly falling behind on royalty payments to major distributors and record labels. According to industry insiders speaking with Billboard, these delays range from several months to over a year.

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

The company's recent history includes several ownership changes:

• 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 Head of Music at Roblox

Rights holders are now considering two main options:

• Removing their catalogs from Napster
• Withholding new releases from the platform

While litigation remains possible, the legal costs could potentially exceed any recovered royalties. Multiple executives report that Napster has been unresponsive to attempts to resolve these payment issues, with one noting that the company has long cited "fundraising struggles" as justification for delayed payments.

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