Someone really, really loves the concept of cloud-based music streaming – despite a very rough history so far.
Just last week, we reported that Mangrove Capital Partners had finalized a financial round with Rdio. Well, early this morning, Rdio not only confirmed the round to Digital Music News, they offered a figure: $17.5 million.
Actually, Mangrove is joined in the round by co-founder Janus Friis (through various investment arms), as well as Atomico and Skype itself. Of course, Friis was one of the masterminds behind Skype, and also Kazaa for that matter. That’s quite the startup pedigree, and probably the motivation for the nosebleed round.
So, roll out a bigger toilet to flush away all this cash? The real question is whether money can buy a business category, and that stats are discouraging – with or without Skype in the background. But maybe the elements are shifting enough to make the cloud truly rain this time, and everyone will get rich. “The convergence of many factors, including the pervasiveness of smartphones, network robustness, and consumers accustomed to on-demand content make it an exciting time to lead a company like Rdio,” said Drew Larner, Rdio CEO. “It says a lot that notable investors share our vision.”
The company has declined to offer any subscriber details, suggesting low uptake so far.
Vasco Barouf
Are Customized Cloud-Based Music Streaming Going To Make It?
I gave Rdio a shot after being a Rhapsody user for over a year and I’m sold. The web interface and stability of the mobile app for Android outweigh the lack of obscure indie stuff.