Rdio To Debut New Subscription Music Service
June 3, 2010 at 6:56 AM (PT)
European tech gurus NIKLAS ZENNSTROM and JANUS FRIIS, who gave the Internet KAZAA and later created SKYPE that sold to eBAY for north of $3 billion, are entering the crowded subscription music area with the debut today of RDIO.COM.
The model will reportedly cost from $5 to $10 monthly for all-you-can-eat access to major label music catalogs, similar to what RHAPSODY, NAPSTER and others in the space are offering. Neither RHAPSODY nor NAPSTER are profitable, with subscription models lagging far behind leading retail services iTUNES and AMAZON.
iPHONE and BLACKBERRY users who pay the $10 monthly fee will have access to a variety of features, including streaming and storing songs.