Today, Spotify announced the acquisition of Echo Nest, which is a “music intelligence” company that determines recommendations for listeners. The key here is that Echo Nest is used by many of Spotify’s competitors like Rdio.
Echo Nest will be a wholly owned subsidiary of Spotify and will honor any existing contracts. A Spotify rep told Engadget,
“In the few cases where The Echo Nest does work with direct competitors we will work with them to understand these relationships and determine the next business steps. The Echo Nest will meet all contractual obligations to all customers.”