Spotify has snapped up a music discovery start-up called Tunigo, AllThingsD reports. Tunigo has a popular Spotify app that generates playlists based on your mood and activity -- so if you're feeling nostalgic, cooking, working out etc. Spotify could well integrate the function into its streaming service.
It could also be Spotify's attempt to see off competition from the recently-launched Twitter Music.
All of Tunigo's employees (there are around 20 of them) will go to work in Spotify's Stockholm and New York offices, but the Tunigo service will keep running. For the time being, at least.
Twitter recently acquired its own music discovery tool called We Are Hunted, which scoured the Twitterverse to find trending artists and songs. Twitter needed this to launch Twitter Music, which is basically the same service rebadged. Obviously Spotify already has its hugely successful streaming service up and running, but it's interesting it's looking to add new ways for people to find new music.
Spotify is also under threat from Apple, which is rumoured to be launching its own streaming service -- dubbed iRadio -- this summer. The last thing we heard, the Cupertino company was securing licensing deals. Universal Music Group is said to be on board (though nothing has been officially announced yet), with Warner Music next in line. Sony Music Entertainment, however, is dragging its feet.
Apple reportedly tried to put the squeeze on the labels, initially offering to pay 6 cents for every 100 songs streamed, which is about half of what rival service Pandora pays. The labels didn't play ball, so Apple upped it and will pay rates nearly "neck and neck" with Pandora's, according to sources.
Would you like to see mood-based playlists in Spotify? Will you check out Apple's iRadio when it launches? And what do you make of Twitter Music so far? Let me know in the comments, or on our Facebook page.