MUMBAI: There is a new twist in the world of music streaming, with Rdio filing for bankruptcy and online radio- Pandora, deciding to buy its technology and employees (subjected to agreement). This means that Rdio has succumbed to de-growth, and also that Pandora is on a spur of acquisition after recently acquiring Ticketfly, in spite of the losses it suffered in the last quarter.
Pandora CEO Brian McAndrews said, “Adding live music experiences through Ticketfly was a transformative step. Adding Rdio’s impressive technology and talented people will fast-track new dimensions and enhancements to our service. I could not be more optimistic about Pandora’s future and the future of music.”
Rdio is seeking protection in the United States Bankruptcy Court for the Northern District of California. The court will supervise an auction for Rdio’s assets, as well look into other customary closing conditions, after which, it could approve of Pandora taking hold of key assets.
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The smartest move by Pandora is the decision to buy key assets- technology, IP and talent property from Rdio for $75 million. While this will be a new shift for Pandora, it will also be a way forward for the service, which is not present in regions like India, and the other 99 regions that Rdio is present in. It would boost plans internationally.
However, a Variety report counters the idea, stating Pandora has not acquired Rdio’s assets as a way of expanding internationally. Currently, Pandora is available in the US, Australia and New Zealand, and the online radio’s future target is the United Kingdom. “We are defining the next chapter of Pandora’s growth story,” added McAndrews.
Pandora, in the statement, said that the acquisition will accelerate the company’s plan to offer fans greater control over the music they love, strengthening Pandora’s position as the definitive source of music.
After facing competition from Apple Music this quarter, it looks like Pandora will reach audiences it probably could not reach otherwise, and is likely to come face-to-face with Spotify and Apple Music. Adding about the new options available through Rdio, McAndrews said, “Whether streaming through radio, on-demand or in-person at live events, Pandora is building the definitive source for fans to discover and celebrate music.”
This acquisition agreement also includes transfer of many members from Rdio’s team moving to Pandora. The company expects to offer an expanded Pandora listening experience by late 2016, pending its ability to obtain proper licenses.
“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 Rdio CEO Anthony Bay.
Earlier this year, Rdio expanded in India and in August, it announced its Mumbai office and appointment of Shamik Talukder as general manager and India head. Additionally, the company appointed Ganesh Iyer as head of content and marketing. Rdio expanded to India by acquiring Dhingana, and its co-founders – Swapnil and Snehal, joined Rdio as VP, after which they stepped into an advisory role.
