The digital music streaming market can be a hard one to make a cut out of, we’ve seen the downfall of multiple contenders within the last few years…even though the technology for it is less than a decade old and the providers in some cases less than 7 themselves.
Products need to have a careful balance in regards to the funding model of subscribers…whether that is ad supported or paid subscription & the library needs to be fairly extensive to keep the average punter happy.
Rdio is the latest in the market of Pandora, Spotify, Apple & MOG to hit a downfall. Started in 2008 the company allowed on-demand access to a library of over 12 million songs and originally raised 125.7 million US dollars of capital to operate.
In recent weeks the company has filed for bankruptcy protection with the Northern District Of California but has now accepted an acquisition offer from competitor Pandora valued at 75 million US.
Pandora is set to acquire ‘key assets’ and staff from the streaming provider, which will include the technology, product, intellectual property and some staff from the provider.
The deal is expected to be closed by the first quarter of 2016.
News of this has come at a time when Apple has indicated that the streaming service Beats Music acquired with the Beats headphone deal is in sight for termination due to lack of interest.