Prior to the advent of Apple Music, there was a reason why discussions of music-streaming services typically revolved around Spotify, and then in the same breath, Pandora was mentioned in a tone of voice that suggested a status analogous to being a disagreeable middle child. Pandora has traditionally been content bolstering its status as the leader in discovery-driven internet radio, even as other companies have conformed to the obvious model of (also) allowing you to download individual songs and albums. It’s a model that has some allure given Pandora’s reportedly slowing growth and limited reach, so now, there’s indication that the Oakland-based company has finally succumbed to the idea of greener financial pastures. Rdio has just shut down, and Pandora has looted the corpse for “key assets” likely to be used for a future Pandora revamp.
The announcement was made on Monday, and in Pandora’s almost-description of what those “key assets” might be, they mention the price tag ($75 million) and the fact that “many” talented members of Rdio’s team will be offered jobs at Pandora. Rdio CEO Anthony Bay won’t be among them, however, and in the intervening days since Pandora’s press release, the depth of his company’s financial troubles has been clarified; Rdio was losing about $2 million a month before they filed for bankruptcy.
Marketing never did seem like Rdio’s strong suit, so if I had to highlight a key factor leading to the service’s downfall, that would probably be it. Show me how I can stream with enthusiasm, future Spotify competitors!
