Against the background of increased activity in the distribution of digital music, Google announced the purchase of Songza, a company that competes with Pandora and other music streaming services. The service allows you to create playlists of songs that are preferred by a particular user.
The cost of the transaction has not been announced, but those familiar with the situation say that it is a question of more than $ 39 million. According to the newspaper The New York Times, representatives of Google and Songza do not comment on this data.
It is expected that the purchase of Songza service will help the search giant to improve its position in the streaming music market by offering users playlists based on the preferences of each of them. The Songza app, which exists for three years, analyzes where, when and under what circumstances a person listens to music. The Weather Channel's collaboration with the weather channel allows Songza to take weather into account in their musical recommendations.
The deal between Google and Songza is inferior in terms of investment to the deal between Apple and Beats, which cost Cupertino in the amount of $ 3 billion. Google also announced that it is not planning major changes in its new company. However, it is possible that the service will be integrated with Google Play Music or YouTube.
Two years after the start of work, Songza announced that 5.5 million people regularly use its service. But this is nothing compared to Pandora, which has 75 million users, which makes it the market leader in Internet radio.
Google regularly buys small companies. The plans of the search engine also buy a stake in Virgin Galactic, to come to grips with space tourism.
The article is based on materials .
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