Seattle-based Rhapsody said it has “never been completely satisfied with recommendations from any third party,” and will now develop its own music personalization feature.
Earlier this month, Rdio also announced that it would end its partnership with Echo Nest following the Spotfiy acquisition. Microsoft, which uses technology from Echo Nest for Xbox Music, said that it will continue working with the company.
The Echo Nest’s music discovery technology is like a personal DJ that creates playlists based on listener’s preferences. The company also helps music services and ad networks learn how to target different music audiences. Despite the acquisition, The Echo Nest said that it plans to meet all contractual obligations with all customers.
Rhapsody noted that customers should expect a “more personalized listening experience” across the Rhapsody and Napster applications over the next several months as its phases The Echo Nest out.
In its most recent earnings report, Rhapsody saw its revenue fall by more than $3 million to $140.6 million in 2013, while its net loss widened to more than $14.6 million — moving the company further away from the elusive goal of profitability.