Report: Google buys music service Songza for $39 million

The arms race to offer the most popular streaming music service just got ramped up another notch with Google’s purchase of Songza this week.

Songza is an Internet radio service that uses contextual expert-curated playlists to attempt to give users the exactly right music at the right time, based on everything from mood to the weather outside.

“We aren’t planning any immediate changes to Songza,” Google announced in a statement.  “Over the coming months, we’ll explore ways to bring what you love about Songza to Google Play Music.”

The terms of the acquisition are unconfirmed, but a source familiar with the deal told the New York Times that Google paid over $39 million.

“We can’t think of a better company to join in our quest to provide the perfect soundtrack for everything you do,” Songza said in a blog post announcing the deal.

With Apple’s recent purchase of Beats music, and Amazon’s unveiling of its Prime Music service, it was clear that Google needed to up its game in the digital music arena.

“Google needed something more sophisticated than its own Google Play Music All Access on-demand streaming service, and is clearly using Songza to help keep pace,” wrote TechCrunch’s, Jordan Crook.

Introduced in 2011, Songza offers both a free ad-supported service, and a 99-cent weekly subscription service that gets rid of the ads. The company now boasts around 5.5 million active users, according to the New York Times.