Spotify Stomps The Competition With The Echo Nest Acquisition.
Spotify has just managed to acquire a “music intelligence” company known as The Echo Nest. This had lead up to them in purchasing a company that other rival companies such as, iHeartRadio, Nokia MixRadio, Twitter music,Rdio, etc, rely upon its data machine services,
The Reliant Competition.
The Echo Nest is known as a “music intelligence” company that utilizes a combination of machines that listen and intense web scraping to construct the database that create features like personalized radio. While their are plenty of companies that have their own data and proprietary system, their are still some that have been reliant on The Echo Nest services.
Now most are wondering what will happen to those Spotify competitors that are reliant on The Echo Nest? Spotify’s own Graham James has spoken on this matter:
The Echo Nest does work with direct competitors we will work with their team to understand these relationships and determine the next business steps. The bottom line is that The Echo Nest will meet all contractual obligations to all customers.
This shows that its not completely clear on what will happen to the current contract The Echo Nest’s has with other radio services, where or not Spotify will continue to pursue the licensing or if they shall pull the plug. A very important thing to note about this is that not every service under The Echo Nest competes with Spotify.
Paul Lamere’s Strength
The Echo Nest very own Paul Lamere has taken upon himself to comment on this recent acquisition on his blog, and it seems that he is very positive about this acquisition strengthening The Echo Nest ever more.
I am incredibly excited about becoming part of Spotify, especially because of what it means for The Echo Nest API. First, to be clear, The Echo Nest API isn’t going to go away. We are committed to continuing to support our open API. Second, although we haven’t sorted through all the details, you can imagine that there’s a whole lot of data that Spotify has that we can potentially use to enhance our API. Perhaps the first visible change you’ll see in The Echo Nest API as a result of our becoming part of Spotify is that we will be able to keep our view of the Spotify ID space in our Project Rosetta StoneID mapping layer incredibly fresh. No more lag between when an item appears in Spotify and when its ID appears in The Echo Nest.