Spotify’s $100 million Echo Nest acquisition is a death sentence for many of Echo Nest’s client relationships. The Echo Nest’s API remains free and open to developers, but Spotify’s competitors would be crazy to let Spotify have control of their data.
Spotify knew this, and is surely more interested in The Echo Nest’s data and technology than keeping their clients. Indeed, forcing other streaming services away from The Echo Nest would keep Spotify a step ahead.
Rdio is now the first company to announce that they’re done with The Echo Nest. In a CNBC interview, Rdio CEO Anthony Bay said their streaming service will move on to other partners:
“As far as we are concerned, they were a good partner, but we have other good partners and we’ll move on… We, probably like most people, have multiple sources of data that we use. So we will stop using that source of data and use other sources.”
There’s no word yet from other competitors, such as Rhapsody and Nokia, but we’ll likely hear from these partners soon.
More as it develops.