Rdio has succumbed to competition from Spotify and Apple Music and has filed for bankruptcy.
Proving what a high-stakes game the digital music world is, Pandora is acquiring rival Rdio’s assets for $75m in cash as Rdio files for Chapter 11 bankruptcy.
Pandora confirmed the acquisition last night (16 November) and said that many members of Rdio’s team will be offered roles within Pandora, subject to close of the agreement.
Such an agreement is, however, dependent upon Rdio seeking protection in the US Bankruptcy Court for the Northern District of California.
Once approved that is approved, Rdio will wind down its service.
The future for Rdio
Despite having a loyal user base, Rdio struggled in the music streaming world against intensified competition from Apple Music and Spotify.
The future now for Rdio is that it will eventually be rolled into Pandora, which will have a more international focus and will incorporate some of Rdio’s key features.
In the meantime, Rdio users won’t be affected. “Rdio’s service will not be interrupted today,” the company said in its blog.
“We will have more updates in the coming weeks on what this process means for your Rdio account, but for the time being the service continues unchanged.
“We couldn’t be more proud of the entire Rdio team and the product we have built. We’re honouured to have connected so many listeners around the world with the music they love. We thank you for your continued support over the years and look forward to bringing you even better music experiences in the future as part of the Pandora team.”
And it seems Pandora is intent on stepping into the breach to give Rdio users an alternative service.
“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.”
Broken records image via Shutterstock
