Rdio plans to stop using The Echo Nest music recommendation service after Spotify, a fierce music-streaming competitor, acquired the company last week. Speaking to CNBC, Rdio CEO Anthony Bay says the company has other sources of data and partners that can help fill the gap for its music recommendation features. "As far as we are concerned, they were a good partner, but we have other good partners and we'll move on," says Bay. "So we will stop using that source of data and use other sources."
The move isn’t exactly surprising. Spotify’s acquisition of The Echo Nest allows it to control the main music recommendation service that its competitors have utilized in their music-streaming services. While the name might not be familiar, The Echo Nest service has been recommending and suggesting music for all types of online radio services. Spotify, Rdio, Vevo, Xbox Music, and a number of other major apps have all used the service for a few years now.
Rdio eyes mobile and global expansion to target competitors
While Rdio initially downplayed its reliance on The Echo Nest last week, its plan to stop using the service altogether comes shortly after Spotify reassured noncommercial developers that the recommendation services will still remain free and open. For commercial customers like Rdio, Spotify says all of The Echo Nest's existing business contracts will be fulfilled, but it’s less clear about any future plans for rivals to continue using the service. Rdio has been struggling with layoffs and recently shut down its Vdio movie- and TV-streaming service, so Spotify’s latest purchase is yet another battle wound for the company in an ongoing music-streaming battle. Rdio is now focusing on mobile and global expansion to help it compete against rivals like Spotify and Beats Music.