Niland, a music technology company that provides music search and discovery engines based on deep learning and machine learning algorithms, was acquired by Spotify for its abilities to enhance the Spotify’s recommendations. This acquisition would enable Spotify to surge ahead of all other players. Spotify intends to attract and retain users by using Niland’s technology that can understand and predict a listeners’ choice of music. This would ultimately allow Spotify to increase the number of paid listener subscriptions while catering to the demand of consistently playing their favorite music.
In 2016, Spotify acquired four companies and collected a $1 billion in debt financing and $ 500 million in convertible note. In 2017, apart from Niland, Spotify bought three more firms namely, Sonalytic, MightyTV and Mediachain. Due to their immense popularity, Spotify has focused on enhancing its personalized playlists like Discover Weekly and Release Radar (biggest USP for Spotify). This means buying Niland and making the best use of its technology is worth the price Spotify paid.
Spotify’s strength lies in obtaining huge cash-flow from multiple directions, which can accelerate its business and functional aspects and can prove to be a game-changer in the future of music streaming.