Spotify, one of the leading music streaming services, announced Thursday that it has purchased The Echo Nest, a company based in Somerville, Mass.
Spotify, which is based in Sweden, said that the company will help users discover new music and hopes that it will make Spotify the best streaming service available, notes The Los Angeles Times. Financial terms of the deal were not made public.
“We are hyper focused on creating the best user experience and it starts with building the best music intelligence platform on the planet,” CEO Daniel Ek said. “With The Echo Nest joining Spotify, we will make a big leap forward in our quest to play you the best music possible.”
CNet reports that the acquisition should also help Spotify build on another revenue stream. Echo Nest currently licenses its technology out to third parties to create playlists and song recommendations. The two companies have also worked together in the past, creating MixShape in 2013.
Pandora also has a similar service called the Music Genome Project, which helps match similar songs together for listeners.
Today’s news comes as Spotify’s competition has continued to expand. Spotify is not only competing with Pandora, but also with iHeartradio, Beats Music and others.
image of Daniel Ek courtesy of Wikimedia Commons
