I’m going to take this as good news for the company. A few people “in the know” tell me that The Echo Nest’s API is nothing special and is still greatly inferior to the algorithms Pandora uses for generating radio stations and “related music” recommendations, but this is still a sign of growth in my eyes, which is good for Spotify. The API will still be available, so it’s not as huge a blow to competitors as it could be.
Still, this reminds me of an article I wrote not long ago in which I criticized The Sweet Setup’s choice of best music streaming service (Rdio) for not considering longevity and business models when recommending products and services to readers. Stuff like this, I feel, strengthens my case.