Spotify taps streaming rival Beatport for EDM videos and playlists

As Spotify tries to fend off Apple, it’s teaming up with one of its rivals to tap into the growing market for electronic dance music, or EDM.

The Swedish music streaming giant is bringing on videos and playlists from Beatport, the online music destination owned by rave promoter SFX Entertainment.

Spotify users will get access to music previously available only on Beatport, and will also be able to stream video from SFX’s festivals and events. It marks the first agreement of its kind that will let Spotify use content from a rival streaming service.

The move comes as competitors such as Apple emphasize playlists made by DJs instead of just using computer algorithms to recommend music.

Spotify, meanwhile, has tried to beef up its offering and distinguish itself in recent months by adding video, podcasts and personalized playlists. On Monday, it said it will start sending users a weekly, customized two-hour mixtape, generated automatically.

By doing the deal, Beatport extends its reach to Spotify’s large user base. Spotify has 75 million users, 20 million of whom pay a monthly fee to avoid commercials and get full mobile access to its library of 30 million songs.

Beatport started in 2004 as an online music store for DJs. SFX bought the site in 2013 and launched a streaming service under the brand the following year.

SFX and its founder Robert F.X. Sillerman are betting on the growing popularity of electronic dance culture worldwide, with a portfolio of festivals including Tomorrowland, Mysteryland and Electric Zoo.

It held an initial public offering of stock in 2013 but has since struggled and its share price has fallen. In May, SFX agreed to be taken private by Sillerman, who offered $5.25 a share in cash for the outstanding stock that he does not already own.

The company’s “go shop” period, when it is allowed to look for a better deal, was extended until Friday.

SFX’s stock jumped as much as 7% in midday trading Wednesday after the deal was announced.

Apple Music launched in June, boasting playlists generated by experts and other music recommendation systems. But the better-received feature was perhaps its Beats 1 service, which is similar to satellite or traditional FM radio.

User numbers for Apple Music have not been revealed, but CEO Tim Cook said on Tuesday that “millions and millions” have participated in the free 90-day trial.

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