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Dropbox acquires music streaming company Audiogalaxy

If you’re still trying to find a good audio streaming service that works right for you, Dropbox may soon have a solution for you. They have acquired audio streaming service Audiogalaxy which is different from all the others.
December 15, 2012

Dropbox has just acquired a personal music streaming company named Audiogalaxy. It is a service that takes your personal music combines it with millions of other songs in their unique version of internet radio. This acquisition could mean that Dropbox might be buffing up the already existing minimal functionality it already has for MP3s that you have stored. Could we be seeing a cloud based music streaming service from Dropbox soon?

Audiogalaxy does have a legal record as it was originally a file-swapping service, but who wasn’t back in 2002? The brand was shut down for several years, before it re-launched as a cloud-based streaming service closer to internet radio. It appears that the company will be assumed into the Dropbox team as opposed to remaining an independent entity.

Audiogalaxy combines the streaming aspect of services like Spotify with a twist. It can take your own personal music, and find songs that match that music and then stream that music along with your personal music. If Dropbox could incorporate a suggestion service into every song you put into Dropbox, that could prove to be useful for a lot of users.

Can Dropbox Make a Streaming Music Service That Will Last?

It very well could, as it already has the cloud infrastructure in place and has a strong user base to which it could push its music streaming service. Dropbox could leverage Audiogalaxy’s experience in both storage and streaming of the files. Having said that, penetrating this market would surely be an uphill task with players like Apple rumored to be launching their own Pandora-like service.

Whether or not Dropbox can make this successful is also up to pricing. It will be interesting to see if Dropbox replicates the ‘freemium’ model which other players have in place or it could come up with some interesting business model which could make it really stand out. A possibility of ad-funded model is also there. However, today’s audiences want ad-free music, and they are ready to pay a price for that.

What’s your favorite cloud music service? Would you like to try out if Dropbox launches a streaming service? Would you pay for it? Let us know.