Questions & Answers about Esa canción es muy original y bonita.
All three mean that/this, but they show different distance:
- esta canción – this song, close to the speaker (physically or in the immediate context).
- esa canción – that song, at a middle distance, or just not especially close to the speaker; very common in everyday speech.
- aquella canción – that song over there, far from both speaker and listener, or more distant in time / memory; sounds a bit more formal or literary.
In your sentence, esa canción suggests a specific song that both people can identify, but it’s not right “here”.