The Next Big Sound is a company that has created software that analyzes listening patterns to predict the popularity of music. The company’s mission is inline with Pandora’s mission to bring great music to the masses.
While the announcement is surprising, Pandora’s interest in an analytics company is not. According to experts, Pandora needed to make such a move to stay current in a competitive market. Stephen Murray CCMP Capital feels like this is smart in general.
Spotify and Apple have made similar purchases in recent months. Spotify purchased Echo Nest last year. Apple has purchased a music data company in recent months, as well. Apple’s purchase came just months ahead of its launch of a streaming radio service that competes with both Spotify and Pandora.
The streaming content market has become highly competitive. While Pandora was one of the first companies on the scene, they have to expand to remain competitive in the growing market. Better musical predictions is the way to do that, according to music experts.