- Who needs glass slippers? This Cinderella cosplayer upgraded with a stunning glass arm 4 Years Ago
- How to check if Yahoo owes you $358 4 Years Ago
- How to stream Bears vs. Redskins on Monday Night Football Today 7:00 AM
- What are the best alternatives to the electoral college? Today 6:30 AM
- The best PS4 games you can’t play anywhere else Today 6:00 AM
- How to watch the 2019 Emmy Awards Today 5:00 AM
- How to stream ‘Power’ season 6, episode 5 Today 4:00 AM
- Former developer at software company deletes his code to protest its ties to ICE Saturday 4:21 PM
- A mysterious website is doxing Hong Kong protesters and journalists Saturday 1:44 PM
- The best ‘Skyrim’ followers and how to get them Saturday 1:26 PM
- Why Joel Osteen gets cyberbullied every time Houston floods Saturday 12:40 PM
- How to stream Jets vs. Patriots in Week 3 Saturday 12:39 PM
- 10 indie dating simulator games you should be playing Saturday 12:31 PM
- How to stream Packers vs. Broncos in Week 3 Saturday 12:14 PM
- Saudi crown prince’s former adviser suspended from Twitter Saturday 11:57 AM
A deal quietly negotiated for several months has now been closed, and announced to the public: Rdio will close its curtains, and hand its assets—both intellectual and technical—to Pandora for a cool $75 million. In short:
Though it never gained the name recognition of Pandora in the U.S., Rdio’s streaming music service operates in more than 100 countries, and was valued at $500 million in 2013. Like Spotify, Amazon Music, and the recently launched Apple Music, Rdio offers on-demand streaming in addition to an online radio option. Unlike those other companies, Rdio’s profits have slumped over the past couple years, as it’s been unable to build a competitive subscriber base.
While Pandora has remained a dedicated Internet radio service since its 2005 launch (after many years of developing the Music Genome Project algorithm that powers the service), the company is now aiming to grow—and it isn’t wasting time in doing so. In early October, the company purchased Ticketfy—looking to streamline the process of hearing a band and seeing them perform—and announced a deal with Sony’s music division last week.
Pandora hopes the assets acquired from Rdio will aid in its international expansion. (Pandora is available in three countries—a small number next to Rdio’s.)
Brian McAndrews, Pandora’s CEO, described the state of the company as being “step one” during an investor call that followed the acquisition announcement, made moments after the market’s close on Monday. McAndrews aims to make Pandora a one-stop shop for online music, offering a full-on subscription service that covers “radio, on-demand, and live music” by late 2016.
The company’s fiercer, more aggressive focus on expansion is likely tied to the nearly 50-percent drop in stock value that occurred immediately after a subpar earnings report was released. While Pandora is a household name, it’s looking like its name alone won’t keep it afloat among services that are miles ahead in terms of offered features.
Pandora’s name recognition, when added to the features offered by the privately owned Rdio service, might be enough to keep the company in the same league as its competitors.
Unfortunately for Pandora, the individual contracts between Rdio and the music labels that provided the on-demand songs for the service will not transfer with the acquisition. Pandora still relies on interactive music licenses.
Rdio appears to be downplaying the news.
While Rdio’s CEO will not be joining Pandora, Variety reports that Pandora is offering jobs to a great deal of Rdio’s soon-to-be defunct team.
Joey Keeton is an entertainment writer who reviewed streaming movies, comedies, and TV series for the Daily Dot. He's also written about podcasts, bizarre web culture, and politics.