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Spotify Made A Genius Move That's Already Hurting Its Biggest Rival

Mar 12, 2014, 21:19 IST

LinkedIn/Anthony Bay Rdio CEO Anthony Bay

Rdio will stop using music intelligence service The Echo Nest following Spotify's acquisition of the company last week, CNBC reports

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The Echo Nest can analyze who you are as a music fan, and then deliver song recommendations to you and even predict what type of music you're going to listen to.

This news is not all that surprising, given that Rdio and Spotify are direct competitors. But when Business Insider reached out to Rdio last week, the company said it had no plans to stop using The Echo Nest.

Rdio provided us with the following statement at the time:

At this time we have no plans to stop using the Echonest API. This is just one of the many tools we use to create the best personalized listening experience for people on Rdio.

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Now, less than a week later, Rdio has changed its tune and will stop using the service because it doesn't want to share its data with competitors.

"As far as we are concerned, they were a good partner, but we have other good partners and we'll move on," Rdio CEO Anthony Bay told CNBC. "We, probably like most people, have multiple sources of data that we use. So we will stop using that source of data and use other sources."

It's unclear what those "other sources" are and whether or not they're as powerful as Echo Nest. We've reached out to Rdio for more information and will update this story if we hear back.

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