December 27, 2013
Vdio, Rdio’s video purchase and rental service for the Web and iOS, is no more. The service is shutting down just eight months after it debuted as a beta product. When Vdio first launched in April, we said it reminded us of Walmart’s Vudu service. It included new video releases, as well as old favorites, with prices that were compatible with other services. That similarity is one of the reasons the service didn't survive. “Despite our efforts, we were not able to deliver the differentiated customer experience we had hoped for, and so Vdio is now closed,” Rdio notes in an email. "We want to thank you for trying Vdio, and we wish you a very happy New Year." Those who purchased movies and TV shows through Vdio will receive a full refund. Those items are no longer available through streaming. Also, as of today, Dec. 27, new Vdio orders are not being accepted. Customers who purchased videos or have unused rentals will be offered Amazon gift cards in an amount equal to the total cost of their transactions on Vdio. Vdio VIP promotional credits are not eligible. Vdio's demise comes five weeks after Rdio began making across-the-board workforce reductions to improve its cost structure. These layoffs have affected “between one-fifth and one-third” of the workforce, with “significant cuts in engineering.” For more on the Vdio closing, click here.