Music intelligence company, Echo Nest, bought by Spotify

Spotify has gone and spent a little money today. They announced this morning that they are buying music intelligence company Echo Nest. Echo Nest powers Web radio, recommendations and playlists for a large number of media firms, including some of Spotify’s competition such as iHeartradio, MOG ( Beats Music), Rdio and Sirius XM.

The purchase will obviously help Spotify curate a better listening experience for the end users since Echo Nest is already doing a great job of that. The purchase will also give Spotify another kick in the revenue department. We know that listening, for the most part, can be free, and the radio function was just made free for tablets a few months ago. Echo Nest already licenses it technology to outside partners to create playlists, detect buzz around a particular artist and recommend similar songs. With Spotify in the wheelhouse, those licensing fees will help Spotify greatly.

Â In a statement, chief executive and founder Daniel Ek said the company has “been fans of the Echo Nest for a really long time” and that the takeover will help Spotify’s “quest to play you the best music possible.”

Details surrounding the purchase price, or the terms or the buy out weren’t released. In the long run, it should help keep those random songs that don’t fit what you are listening to from popping up and it should help make some better playlist options as well.

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