Google Cloud soon to host Spotify content, M&A speculation erupts
Spotify is packing up its own approach to serving its 20 million subscribers the music they want. Instead, it will be in contract with Google Cloud Services to store and deliver content.
We don’t know what the deal is going for, but the Swedish streaming media company decided that it could afford to offload its backend without risking loss of quality nor performance. Previous to the deal, it bought or leased data centers of its own to get the results it wanted at a price it could live with.
So, why Google? Why not Amazon or Akamai? It came down to Spotify’s experience (and preference) with the data giant’s “data platform and tools” to quickly and easily manage petabytes of shows and albums.
While Spotify’s announcement is quite effusive, we may expect to see some issues as the migration process goes on. Speculators have gone on to say that the package Google was offering was irresistible for Spotify to refuse. Too irresistible to not be seen as a veiled attempt to curry an acquisition deal.
First step towards acquisition by Google. Also, how much do you want to bet that Google gave it for almost FREE. https://t.co/1U6vPKYkzy
— Om Malik (@om) February 23, 2016
Google first reportedly tried to contract Spotify to power its a music service in 2011. It then failed to acquire Spotify back in 2014 on account of negotiations having broken down. It did, however, acquire Songza and has since absorbed its features into Play Music.