Rdio Is Shutting Down In Less Than 24 Hours…

It’s been a roller-coaster year for Rdio, the streaming service lauded by some as superior to Spotify and Apple Music.  But streaming is all about scale, and Rdio simply didn’t have enough subscribers, despite a very elegant and clean interface.    Amidst paltry subscriber totals, Rdio succumbed to bankruptcy, only to be plucked by Pandora for $75 million.

That introduced tricky questions around life-support: immediately after the acquisition, Pandora was forced to inject millions to keep Rdio alive.  Now, Rdio is going completely dark, with a shutdown set for Tuesday, December 22nd at 5 pm PT.

Here’s a note sent to all Rdio subscribers.


8 Responses

      • Casey

        Rdio killed the Rdio star. They had a global presence while being first to many countries and had huge promotional backing in the US from Cumulus and they still couldn’t get subscribers. Outside of creating fancy interfaces the company was incompetent.

          • Anonymous

            The funny thing is that Rdio had money. But clerly no amount of funding could have saved a streaming service their size while managing to burn $2 million per month.

  1. superduper

    The thing I’m wondering is this: is this the tip of the iceberg or an isolated incident? In other words, is Rdio a cautionary tale for the music industry, exposing the fundamental problems with streaming services?

    • Anonymous

      I am sure this will continue in 2016. Basically any service without significant financial backing is at risk. And the hike in Sound Exchange rates will likely take out thousands of internet radio stations if it isn’t reversed.

      I wouldn’t be surprised if both Rhapsody and Slacker fall in 2016. Myspace could finally be put to rest. Rara already fell quietly last month. That means pretty much all small on-demand streaming companies will be gone. For an industry once dominated entirely by small companies 2016 could be a sad year.

      • superduper

        What you are saying is probably true. Smaller companies will fold, and die and larger companies will become larger. (And btw I didn’t even know MySpace still existed! LOL.)

        What I’m really wondering is if this is just one of these average cases of a smaller company succumbing to the natural growing pains of any industrial sector or if it really truly is a red flag for streaming services. I actually wouldn’t be surprised if it is a cautionary tale because Rdio was not exactly small. In fact it was quite large. Maybe not as large as Spotify but still it is pretty large. Because Rdio is a relatively significant player, I also wonder if there is a potential domino effect to this folding, and if this will affect the industry in a sort of chain reaction.