Fallout from Spotify's acquisition of music intelligence / discovery company Echo Nest is growing. Following in the footsteps of streaming provider Rdio, Rhapsody - which also operates Napster - recently announced intentions to end its partnership with Echo Nest.
The decision to leave Echo Nest might end up being a good thing for Rhapsody users. Instead of simply relying on a bevy of other sources for data to help curate playlists like Rdio CEO Anthony Bay admitted to earlier this month, Rhapsody will use the shake-up to develop its own music personalization service.
The company said they've never been completely satisfied with recommendations from any third party and that their customers should expect a more personalized listening experience. Said experience, however, won't be ready for another several months as they phase out Echo Nest and build their own service.
In response to the Spotify acquisition, Rdio revealed plans to break away from Echo Nest nearly two weeks ago. Bay noted during an interview with CNBC that Echo Nest was a good partner but they have other good partners and they'll move on. The reason for severing the partnership, he said, was because they didn't want to share their data with competitors.
It's worth reiterating that Echo Nest plans to keep all contractual obligations with all existing customers. What's more, Spotify said they plan to operate the company as a wholly-owned subsidiary.