Spotify is getting serious about data, buying a music-intelligence firm to help power recommendations- potentially cutting out competitors in the process. Echo Nest powers web radio, recommendations, and playlists for a large number of media firms, including some Spotify competitors, including iHeartradio, MOG, Rdio and SiriusXM. The Echo Nest purchase also provides Spotify with another […]
Spotify is getting serious about data, buying a music-intelligence firm to help power recommendations- potentially cutting out competitors in the process.
Echo Nest powers web radio, recommendations, and playlists for a large number of media firms, including some Spotify competitors, including iHeartradio, MOG, Rdio and SiriusXM.
The Echo Nest purchase also provides Spotify with another stream of revenue from the startup’s business of licensing its technology to outside partners to create playlists, detect buzz about particular artists and recommend similar songs.
In a statement, chief executive and founder Daniel Ek said the company has “been fans of the Echo Nest for a really long time” and that the takeover will help Spotify’s “quest to play you the best music possible.”
The Echo Nest’s clients also include media companies, tech outfits, and major brands like MTV, Twitter, Foursquare, VEVO, Yahoo, Nokia, Coca Cola, and Reebok.
Spotify said in a release that the Echo Nest API will remain free and open. The API currently is free for non-commercial uses.
