Spotify Acquires The Echo Nest, Music Data Provider For Rdio, iHeartradio and More
(UPDATE 2) Spotify is acquiring music intelligence provider, The Echo Nest. The music streamer says that the deal allows them "leverage The Echo Nest’s in depth musical understanding and tools for curation." But The Echo Nest already feeds music data to Spotify along with Rdio, iHeart Radio and many other competitors who are likely a bit nervous today despite assurances from both companies who say The Echo Nest's API will remain "free and open."
"The developer community is crucial to the success of both Spotify and The Echo Nest and will remain a priority for the combined companies," according to a statement.
But with The Echo Nest joining Spotify, the music streamer's CEO Daniel Ek says Spotify will "make a big leap forward in our quest to play you the best music possible.” It's hard to imagine that he just paid 10s of millions of dollars to also let competitors using The Echo Nest API take that "big leap" with him.
And the list of major music companies using The Echo Nest API is long: Clear Channel’s iHeartradio, MOG (it's unlcear if that relationship extends to Beats Music), Rdio, SiriusXM, BBC.com, Foursquare, MTV, Twitter, VEVO, Yahoo!, connected providers doubleTwist and Nokia, and big brands like Coca Cola, Intel, Microsoft and Reebok.
No details of the deal were released, but The Echo Nest had received $23.6 million in funding since launching in 2008. Major investors include Commonwealth Capital Venture, Norwest, Martix and Jim Pallotta. Echo Nest offices in Sommerville, MA and San Francisco will remain open.
We'll have reaction and more as the story develops.