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Google Looking to buy Streaming Service Songza

TMCnet Feature

June 09, 2014

Google Looking to buy Streaming Service Songza

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By Michael Guta
TMCnet Contributing Writer

The music industry is going through another transformation as CD and download sales continue to decline. Listeners are now opting for streaming services which deliver unlimited amount of music day and night. With streaming, listeners have many personalized options that make it possible to listen to any genre no matter how obscure. This has led Apple (News - Alert) to purchase Beats Electronics, not for the quality of its speakers, but for its promising streaming service, which according to Tim Cook was the first streaming music app to get it right. And since the tech industry seems to be in a monkey-see-monkey-do mode these days, Google (News - Alert) is said to be in talks to acquire Songza, a music curation and streaming service with 5.5 million active users.


Currently Pandora (News - Alert) enjoys 77 million active users followed by Spotify with 24 million, and both companies are valued in the billions. But according to the NY Post, Google is offering Songza a mere $15 million, an amount that probably has the company's owners questioning the offer. However, reports are circulating it could be much higher because there are other suitors, and with a coffer of $150 billion plus, Apple might be one of the companies.

While Google has its Play Music All Access service with an enormous song catalog, it doesn't have the Songza technology for music curation that has its users happier than other platforms. The key to a good streaming company is providing a personalized playlist that is more accurate depending on your mood and activity. Songza enjoys very positive reviews from its users on how it creates its playlists compared to other platforms.

Pandora, iTunes Radio, and other services create playlists with your favorite artists and song, while Songza takes into consideration what you are doing when it creates the playlist. And listening to death metal while you are trying to write an essay might not be what you want even though the music is on your favorite list. The company's application knows the difference between working out and while at work, and creates a playlist that accurately matches those activities. 

Neither Google or Songza have commented on the deal, if indeed it has even taken place, but Google's interest has definitely placed a spotlight on the company and that $15 million price tag (News - Alert) is probably much higher by now.





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