Spotify Acquires the AI Startup, Niland.

22.05.2017

Spotify is continuing its buying spree, adding a fourth company to its list of acquisitions for 2017 alone. The newest addition is called Niland and is a Machine-Learning Startup based in France. Spotify will be aiming to use Niland’s technology to bring its users better recommendations.

Spotify is on top of the music streaming market right now. It reached 50 million paying users in March and has more than double that if you factor in the people who use the free version. And you should factor them, because they might not pay, but they do consume ads, which Spotify gets paid for. In comparison, Apple Music is estimated to have around 30 million paying users.

The healthy lead that Spotify has established has been in part attributed to the company’s focus on personalized playlists like Discover Weekly. And while it still has human curators doing some of the work, Spotify would love it if AI could take over and make personalized discovery even better. Some of its other acquisitions are also pointing in a similar direction. In 2017 alone, Spotify acquired three other startups: MightyTV (content recommendation), Mediachain (blockchain) and Sonalytic (audio detection).

Although Spotify has yet to reach profitability, it is getting more than sufficient capital from fundraising and financing. In 2016, the company collected 1 billion USD in debt financing and another half a billion in a convertible note. That’s without fundraising rounds and Spotify’s own revenue.

The name of the game for the leader in music streaming seems to be getting better and bigger while staying ahead. Eventually, Spotify hopes, this turns into profit.
 

Source: https://www.forbes.com/sites/hughmcintyre/2017/05/18/spotify-has-acquired-machine-learning-startup-niland/#556f1f2e3792
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