In a press release from Pandora, the company announce it would acquire key assets and technology from Rdio. The deal worth $75 million is part of Rdio filling for bankruptcy. Pandora would also offer employees positions within Pandora at the close of this deal.
I know my heads spinning too! Rdio filling for bankruptcy comes somewhat of as surprise as the streaming service market heats up with Apple, and Youtube both entering with their own offerings. Than on top of this news Pandora, known for radio and not on demand music buying technology and intellectual property from the company is surprising.
“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,” said Brian McAndrews, chief executive officer at Pandora. “Wherever and however fans want to hear music, we intend to be their go-to destination.”
Sounds like the company may want to start developing and enter the on demand streaming service market. Services like Apple Music all offer features similar to Pandora, but Pandora has crafted a brand and identity around personalize radio stations. There growth may be stagnating now theirs choices from YouTube, Google, Apple, and Spotify all flooding the market with any music anytime all for the same prices each month.
Whether Pandora starts to compete with Spotify and other streaming services is still a long way off, but they’ve set themselves up with the technology and people with key knowledge. Rdio will stop operating once the deals approved by the courts, and their brand won’t be used by Pandora in the future. It looks like the streaming market may finally start to settle down and the winners become more clear as time goes on.
Tell us what you think about Pandora buying key technology and property from Rdio, and how Rdio is filling for bankruptcy in the comments down below!