Rdio Rolls Out A Free Music Model
September 4, 2014 at 3:58 AM (PT)
In order to compete with webcasters in the streaming music market, RDIO, which currently charges for online subscriptions, is now offering free music -- with advertising to support the offering.
THE NEW YORK TIMES reports, "RDIO, which is based in SAN FRANCISCO and offers its music service in 60 countries, has been admired by technology and music insiders for its clean design, but it has long played second fiddle to SPOTIFY and RHAPSODY. Its change to a so-called freemium model -- which lures users with free songs and then tries to sell them more extensive features by subscription -- will help it compete against those services and others like BEATS MUSIC and GOOGLE’s PLAY MUSIC ALL ACCESS."
“What we’ve learned collectively over the last few years,” RDIO CEO ANTHONY BAY told THE TIMES, “is that the most successful models are freemium models.”
THE TIMES notes, "RDIO’s new design, which fills a user’s screen with readymade playlists based on their tastes, draws heavily on the Internet radio format, which was popularized by PANDORA and has become an increasingly important as digital outlets try to figure out how people prefer to listen to music online. The radio giant CLEAR CHANNEL has made an aggressive push for its online radio platform, iHEARTRADIO. Recently RHAPSODY introduced UNRADIO, a music service that is free for T-MOBILE customers, and GOOGLE bought SONGZA, an online playlist service. The growing competition for streaming music also involves APPLE, which introduced its PANDORA-like iTUNES RADIO service last year, and in MAY agreed to pay $3 billion for BEATS ELECTRONICS, the company behind BEATS headphones and the BEATS MUSIC subscription service. YOUTUBE, a division of GOOGLE, is also developing a paid music service that is expected to be introduced this FALL."
“This is the most exciting Internet radio product we’ve seen and provides a compelling complement to our nationwide broadcast radio platform,” said LEW DICKEY.