According to a New York Post report today, Google is currently in talks to purchase popular music streaming service Songza for $15 million.
Songza is a service that creates music mixes for users based on a number of factors. These factors include one’s mood or the local weather forecast. The service operates off a number of complex algorithms alongside human interaction with the software. Overall, this acquisition for Google would be similar to Apple’s purchase of Beats, which included the streaming service.
This decision seems odd considering how heavily Google is already entrenched in the music market. Google currently has a number of music streaming products and services. The Google Play Store features a comprehensive music section directly competing against iTunes. Google also offers a premium service in the form of Google Play Music All Access, a subscription based service.
YouTube is also arguably the largest music streaming service in the world, with nearly every single artist publishing their content on the website. While it displays video as well, YouTube is a free music distribution service in many ways. However, there are two real reasons why Google may have chosen to acquire Songza.
While YouTube is a massive service particularly for music, Songza is still more cohesive and easier to navigate when it comes to finding music. This is due to the fact that Songza is only focused on music. Similarly, Songza is just flat out better than All Access, with more features and an overall more useful service.
Google may have also been considering this from a valuation standpoint. Songza has a solid user base of approximately 5.5 million listeners per month. Unlike competitors such as Spotify and Pandora, the service would be cheaper to acquire. For example, Pandora is valued at $5 billion.
This information is still unconfirmed as of yet, but most expect Google or Songza to officially announce this acquisition within the coming weeks. If this is legitimate, Google may be able to enter the music streaming market stronger than before with a more comprehensive service to boot.