Apple Music has one less competitor to worry about, although another of their foes just got a little bit stronger, as Pandora today announced its $75 million acquisition of “key assets” from Rdio.
According to a press release on the acquisition, Pandora has gained unspecified “technology and intellectual property,” and a number of Rdio’s employees will be given roles at Pandora. Pandora plans to use Rdio’s assets to “offer fans greater control over the music they love,” with an expanded Pandora listening experience set to launch in late 2016, depending on licensing. Pandora wants to become the “go-to destination” for wherever and however its fans want to listen to music.
“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,” said Anthony Bay, chief executive officer of Rdio.
Pandora is one of the top music streaming services, with over 80 million users. The service offers free, ad-supported radio stations based on particular artists or songs, unlike the pay-for-play Apple Music, which offers on-demand listening of the majority of the iTunes library.
Rdio offered a similar service, but also offered Rdio Unlimited, a premium service tier that allows users to listen to any song on-demand, just like Apple Music. It appears that Pandora acquired Rdio to hasten its expansion into the in-demand market.
The deal has to receive permission to go through from the United States Bankruptcy Court. If approved, Rdio-branded service will end in all of the markets it serves, as Pandora is acquiring the assets of Rdio, not the Rdio brand itself.
