AH spotify 1.1

Google/Spotify Deal Never Happened Due To Spotify’s High Asking Price

July 22, 2014 - Written By Justin Diaz

Google may have settled on Songza as the streaming music service that it purchased earlier this year, but reports are stating that Google had at one point been interested in actually buying up a rival streaming service, and a popular one at that, a service we all know and should be familiar with by the name of Spotify. There were already rumors that Google would be buying Spotify a couple of months back in the early part of 2014, but what’s more likely is that it was simply chatter over the consideration Google had late last year in 2013, when they were insterested in picking up Spotify but had decided it was more than they wanted to spend on the acquisition.

This may have ultimately led to the decision to buy Songza instead, and quite honestly they couldn’t have made a better choice. Songza was cheaper,(apparently)and has quite the superior music aggregation software behind its available service that not only bests Google’s own Play Music All Access in terms of feeding music to the listener based on certain criteria, but rivals the other top streaming services as well. It would seem to have been all for the best, as Songza and Google are proud to be working together and Songza stated in their blog post after the initial announcement from Google that they were happy to be joining the team. The main reason behind the decision to pull back is said to be over the asking price that Spotify was requesting, but according to a source of the Wall Street Journal Google’s CEO Larry Page is not the biggest fan of subscription based services and that was another factor in the matter. I personally find that part quite perplexing since Google has a subscription based music service themselves, which there’s a good bet Larry page uses.

Whether or not Larry actually has a distaste for subscription services is unconfirmed by Google or Spotify, but in any case Page and Google as a whole decided to look elsewhere and they found what they were looking for. Spotify of course probably isn’t dwelling on the matter, as their service is doing just fine and subscribers of Spotify generally love the service. Spotify staying on their own will also continue to foster innovation both between Google and Spotify as well as the other player in the space, and push both companies to make their music streaming services better to further compete with one another as well as others in the market. Google is also rumored to be launching a YouTube based music service which is said to be the Spotify competitor, but we though that’s what Play Music All Access already did in a sense. Perhaps we’re crazy.