Spotify rival Rdio is set to wind down and file for bankruptcy in the US. As reported by Music Business Worldwide the platform has reportedly already agreed to sell key assets to Pandora for $75m.
Pandora, which has always functioned as a personalised radio service is now set to acquire the assets needed to become a fully fledged Spotify and Apple Music competitor- which is great news, The Gen was just thinking the other day that the streaming landscape isn’t fragmented or competitive enough right now.
The deal is dependent on Rdio seeking protection in the United States Bankruptcy Court, after which the service will be discontinued in all markets.
This didn’t stop CEO at Pandora Brian McAndrews jumping right in there feet first with a quote, saying: “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. Wherever and however fans want to hear music, we intend to be their go-to destination”.
He continued: “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”.
Which is a nice grand sweeping statement but don’t forget, Brian that you need the approval of the bankruptcy court and they don’t give the nod and wink to just anyone you know. The process is necessary as Pandora is not acquiring the operational business of Rdio.
Rdio CEO Anthony Bay, who will not join Pandora as part of the deal, added: “The Rdio team built an acclaimed product and technology platform that has consistently led innovation in the young streaming industry. I’m pleased that many members of the Rdio team will continue to shape the future of streaming music, applying our tradition of great design and innovative engineering on an even larger stage with Pandora”.
Pandora also acquired Ticketfly this year, adding further credence within the industry to the view that streaming companies are about to get seriously into the ticketing game.
It will be interesting to see where it goes from here and if Pandora can create the right mix of radio, streaming access, ticketing offers and crucially, a mid level price point that could potentially attract a mass market for streaming subscriptions. As explored here in The Verge, current streaming services are aware that they need to grow beyond their current model and audience in order to survive in the long term.
Music Business Worldwide has also published a list of Pandora’s unsecured creditors, including $2.4m owed to Sony Music.
And we got through all of that without a single mention of ‘Pandora’s Box’, well done us.
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