As the deal between Apple and Beats is now official, specialists wondered what Google’s move was going to be in order to counter the rival’s purchase. According to inside sources, that move will be the purchase of Songza.
Google did not manage to do much when it comes to Internet media streaming but this $15 million deal may be the first step towards something different. With Pandora and Spotify having a total of over 100 million active and real users, the market’s potential is huge for the search engine giant.
Songza does seem like a weird decision for Google as only 5.5 million users are active but the selling point seems to be the growth potential offered by the algorithm used to play music based on the mood that the user is in. Combining this with the huge investment potential that Google has can lead to something that would compete with similar services.
According to Songza users, the playlists that are offered by the included “play based on mood” feature is perfect. This means that Songza may soon grow in value, making the $15 million purchase a smart investment for Google. Spotify is currently valued at $4 billion.