Five Reasons Why Dropbox’s Acquisition of Audiogalaxy Could Be a Big Deal

From Billboard:

Google, Amazon and Apple may soon get more competition in the cloud music space. Audiogalaxy, a second-tier music hosting and streaming service, announced this week it has been acquired by file hosting service Dropbox.

1. Dropbox is a large, high-revenue business with over 100 million users and revenue reported at $240 million in 2011. It has the ability to invest in a licensed, scan-and-match music locker if it so chooses. A licensed music locker – Audiogalaxy had been unlicensed thus far – would return some value to rights holders.

2. Dropbox creates excellent products that are (a) easy to use and (b) can be accessed on multiple devices. Both are traits needed in a successful digital music service. It stands to reason a Dropbox music service would share the same product characteristics as the Dropbox file hosting service that has become so popular.

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