Rdio is history as Pandora plans to purchase parts of the streaming service
The competitive streaming music business is now a little less crowded. Pandora has just announced it is planning to purchase “key assets” of Rdio for approximately $75 million.
As part of the deal, Rdio will seek bankruptcy protection and wind down its streaming service.
Pandora will pay to acquire “technology and talent to accelerate its own business strategy.” In the release, the company said it was planning to offer an “expanded” listening experience by late 2016. That presumably means a more traditional streaming service compared to the radio station approach Pandora currently offers.
“Whether streaming through radio, on-demand or in-person at live events, Pandora is building the definitive source for fans to discover and celebrate music,” said Brian McAndrews, chief executive officer at Pandora. “Wherever and however fans want to hear music, we intend to be their go-to destination.”
“We are defining the next chapter of Pandora’s growth story,” continued McAndrews. “Adding live music experiences through Ticketfly was a transformative step. Adding Rdio’s impressive technology and talented people will fast-track new dimensions and enhancements to our service. I couldn’t be more optimistic about Pandora’s future and the future of music.”
Rdio has a hard time competing against other more well-funded rivals. Major player Spotify has quickly added a nice number of features this year, and Apple Music’s launch back in June more than likely didn’t help Rdio’s situation.
