Rdio 'Transitioning Away' from Spotify-Owned Echo Nest (Source)

Rdio will likely not renew its business ties with The Echo Nest following Spotify's announcement last week of its plans to acquire the music intelligence platform. 

Speaking with CNBC at SXSW, Rdio's Chief Executive Anthony Bay said, "As far as we are concerned, they were a good partner, but we have other good partners, and we'll move on. We will stop using that source of data and use other sources." 

Instead, the music streaming site will be "transitioning away" from The Echo Nest, but not dropping them right away, a source knowledgeable with the arrangement said, confirming comments made by Rdio's Chief Executive Anthony Bay on Tuesday. Instead, Rdio will finish the contract, but not renew, the source verified. It's too early to say whether Rdio will turn to Gracenote or some other data service to help power its recommendations, the source said.

Rdio currently uses Rovi to provide band and song data, and could expand that relationship. Rovi also provides metadata to other streaming services, including Pandora, Rhapsody, MOG, and even Spotify. It is unclear whether Spotify will maintain their relationship with Rovi now that they have purchased The Echo Nest.

When the deal between Spotify and The Echo Nest was first announced, there was speculation that Spotify's competitors would part ways with the intelligence platform rather than contribute to the funds of the world's biggest paid on-demand music streaming service.

Rdio, valued at $17.5M according to CrunchBase, is the first to mention its probable departure with The Echo Nest. Other Echo Nest clients -- including iHeartRadio, SiriusXM, Vevo and MTV -- have not said whether they will follow the same course of action rather than help fill Spotify's coffers while possibly exposing competitive information to a rival.

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