Pandora today announced that it was acquiring the assets of now failed subscription service Rdio. While the whispers about Rdio’s future had been building for some time, the deal is more interesting for what it says about Pandora’s plans than what it says about the state of the subscription business.
Rdio Battled Bravely And Set Innovation Standards But Fell Short
For what Rdio lacked in subscriber numbers it made up for in innovation. It continually set product and feature precedents that Spotify and others subsequently aped, and its $75 million dollar ad inventory deal with US radio giant Cumulus sets a business model blueprint that other streaming services will follow. But for all its efforts and extensive marketing efforts Rdio was simply not able to get to the same sort of level as Spotify’s 2nd tier competitors, let alone to seriously challenge Spotify itself. The music subscription business is not…
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