Napster is facing significant criticism over delayed royalty payments to major distributors and record labels, with some reports indicating delays ranging from several months to over a year. The streaming service's CEO Jon Vlassopulos has declined to comment on these allegations.

Despite being a minor player in the streaming industry (accounting for less than 1% of overall streaming income for most rights holders), the missing payments represent substantial sums for artists and labels. Multiple industry executives have expressed frustration with both the payment delays and Napster's unresponsiveness to resolution attempts.

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 Roblox's Head of Music

Rights holders are now considering two primary options:

1. Removing their catalogs from Napster or withholding new releases
2. Pursuing litigation, though legal costs could potentially exceed recovery amounts

The situation has particularly impacted smaller labels and artists, who rely on every revenue stream. According to one distributor executive, "What we earn from it isn't that much, but in terms of payouts to the artists and labels we represent, it can be a solid sum of money."

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