Rdio intends to stop using The Echo Nest music recommendation service after its acquisition by Spotify. Spotify is a fierce music-streaming competitor that acquired the company last week. While speaking to CNBC, Rdio CEO Anthony Bay said the company is in possession of alternative data sources as well as partners which will serve in place of its music recommendation features. He also acknowledged that even though they The Echo Nest is a good partner, there were more good partners adding that they will proceed in order to stop using that service of data and switch to different sources.
The move doesn’t come as a surprise. The acquisition of The Echo Nest gives Spotify access to control the main music recommendation service which its competitors have used in their music-streaming services. Although the company has not been familiar, The Echo Nest has been suggesting and recommending music for most of online radio service providers. Some of them include Spotify, Vevo, Rdio, Xbox Music and several other applications that have used the service for a few years up to date.
Although Rdio previously downplayed its reliance on The Echo Nest last week, it is planning to stop using the service despite Spotify reassurance to noncommercial developers that their recommendation service would still remain open and free for all. However, for commercial clients such as Rdio, Spotify indicated all of The Tech Echo Nest’s current business contracts will be fully met, but it was not very clear about possible future plans for rivals to go on receiving their services. Layoff and the recently shut down of Vdio movie- and TV-streaming services are some of the challenges that are facing Rdio.
This means that Spotify recent acquisition of The Echo Nest appears to be an emerging battlefront for the company in its ongoing streaming services. Rdio has shifted its focus to mobile and global expansion to get a better grip to compete its rivals including Beats Music and Spotify.