Spotify keeps purchasing content to solidify its global music streaming lead. But can they afford this?
To help improve its music discovery process, Spotify purchased Paris-based machine learning startup Niland.
The announcement on their blog reads,
“We are pleased to welcome Paris-based machine learning startup Niland to the Spotify family. Niland has changed the game for how AI technology can optimize music search and recommendation capabilities. They share Spotify’s passion for surfacing the right content to the right user at the right time.
The team from Niland will join our New York fice and help Spotify continue innovating and improving our recommendation and personalization technologies. The result will be more music discovery which benefits both fans and artists. Their innovative approach to AI and machine learning based recommendation systems… a perfect fit for the Spotify team.”
The move will also help Spotify solidify their lead as the world’s top music streaming service. It currently counts with over 50 million paid subscriptions.
The Niland team will join Spotify in their New York fices. Speaking on the acquisition, in a statement on their website, Niland wrote,
This marks the fourth company that the Swedish streamer has purchased in the past several months. In April, the company acquired blockchain tech firm Mediachain Labs. This acquisition will help the streamer better attribute songs. To roll out a possible Shazam-style service, the company purchased Sonalytic in March. During the same month, it also acquired MightyTV and tapped founder CEO Brian Adams as its new VP technology. The move will help boost its audio advertising business.
The move comes as Spotify prepares their IPO. It recently received a $13 billion valuation. The company is also expected to post losses around $300 to $400 million. This worries investors ahead their direct listing on the New York Stock Exchange. The company has also yet to post prits in ten years.
by Magnus Hoij (CC by 2.0)