Rdio set to shut up shop after Pandora buys struggling music service’s global operation

RdioAnother music streaming service appears set to close with Pandora announcing it is buying struggling rival service Rdio for US$75m.

It looks likely that Rdio will close its Australian presence after running out of money, with Pandora insisting the company seek bankruptcy protections as part of the deal. 

Locally is understood Rdio has struggled, despite signing partnership deals with Nova Entertainment and News Corp last year to drive subscribers. However neither of these deals were renewed. 

Rdio now joins the likes of Telstra’s Mog, which quietly closed earlier this year after a series of takeovers led to it being rolled into Apple Music and Deezer, which continues to be available in Australia despite closing its local sales office, in what appears to be an increasingly overcrowded market.

Back in 2012, DMG Entertainment (now Nova Entertainment) announced a joint streaming partnership with Rdio which was not renewed, with Nova selling out of the loss-making joint venture earlier this year.

Nova Entertainment CEO Cathy O’Connor told the Financial Review in February 2015 that the decision to exit the partnership was a case of changing priorities for Nova Entertainment, noting the music content market was “very competitive”.

O’Connor said at the time: “We have reprioritised our investment into areas where we think there is a bit more open space for us, and equally where we feel the consumer is responding in really great ways.”

Nic Christensen 


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