Beats Music acquiring Topspin and Spotify acquiring The Echo Nest didn’t seem to make the splash in the news that I thought it would. The two companies give the two major streaming services an over advantage that other music services don’t have; the power to discover new music and market it.
Topspin will help Beats with merchandising, music discovery and direct artist-fan relations. It is ironic that Ian Rogers has acquired the company where he got his start in the music industry. It is also ironic that Topspin’s client list features Beats Music competitor, Spotify. This seems like a conflicting issue. However, Topspin says its business as usual.
Spotify hopes that the acquisition of The Echo Nest will bring in global users and allow them to help with music discovery. Daniel Ek wants his consumers to listen to more music and wants to create an experience for the consumers. This is a well thought move, because The Echo Nest was built solely on helping fans discover music.
Rdio has already decided to cut ties with The Echo Nest in fear of unethical practices. We already know that Spotify is a competitor of Rdio. Anthony Bay, the CEO of Rdio, feels that The Echo Nest will pick the best picks for Spotify. He believes that Spotify will have the advantage and Rdio will get the water-downed choices. Bay said there are “other good partners” and that they will stop using The Echo Nest. Who will be the next to leave? MOG, Clear Channel, or Rhapsody? Only time will tell.