Spotify didn’t have much competition a few years back, but today there is iTunes Radio and Beats Music, plus others. So Spotify can no longer sit back and rest easy. That is why Spotify will be stepping up their game by acquiring The Echo Nest. It’s a great move by the company.
The Echo Nest calls themselves a “music intelligence company” because they help determine what kind of recommendations to make to music listeners during automatic streaming radio services. They help music listeners discover new music. For streaming services, being able to recommend a good song is what keeps users coming back for more. It is expected by users these days and they wouldn’t accept anything less.
The Echo Nest’s API will stay free and open. That’s good news for all the rival services who rely on the company’s music recommendation services. Spotify will not be able to close it off and shut the competition down in a single move. The deal is reported to have been worth around $125 million, although Spotify has not commented. Maybe this will give Spotify a boost and help it compete better.
Source UbergizmoFiled Under: Technology News