Is Twitter Getting More Musical?

by CXOtoday News Desk    Jun 06, 2014

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Microblogging platform Twitter is in talks with Berlin-based audio sharing website SoundCloud to add a music service to its portfolio, reports Financial Times citing people familiar with the matter. SoundCloud is an audio platform that enables people to upload, record, promote and share their music. The deals for the online music services are “worth billions of dollars,” said the news report, which would mean that it could be one of Twitter’s largest acquisitions till date.

Twitter’s interest in music-streaming companies comes right at the time when Apple acquired Beats, the headphones and music-streaming firm for $3 billion.

The company also launched its standalone music streaming app in 2013, which they had to discontinue as it saw very little market demand. It was reported at that time that Twitter would instead go after partnerships with music services.

According to some earlier news reports, the company was looking to buy music-streaming service Spotify and internet-radio provider Pandora Media. However, none of the deals materialized. Instead, it acquired ‘We Are Hunted,’ a three person music streaming-startup from Australia last year, in a bid to aggressively expand its capabilities to carry multimedia content.

Experts believe the company is increasingly under pressure from shareholders over its flagging growth. Although it attempted to attract more entertainment celebrities, it did not see much impact on the expanding of its user base.

The only saving grace was last year’s initial public offering, which saw the microblogging site going public, generating $2.1 billion in cash. Twitter also spent $300 million on mobile advertising exchange MoPub, making it the company’s largest acquisition so far. Even Soundcloud, which has a streaming music component, is worth a hefty $700 million, according to the FT report.

The company continues to remain aggressive about new digital platforms. According to a recent Reuters report, Twitter is looking to acquire Namo Media, a technology firm specializing in “native advertising” for mobile devices. It has been reported that the latter’s technology would be rolled into MoPub and the combined platform would improve the social media power’s ability to deliver “native ads” - promotional material that blends into mobile apps and mobile websites.

All said and done, music streaming which is a hot market at present can take Twitter’s revenues to greater heights, saying NY Times stating that after Apple and Twitter, Google, which is also in the market for a music streaming service, may throw up a surprise prompting speculation that it might snap up Spotify.