Soon the concept of owning music, no matter if as mp3 files or as physical products, will be considered as history. It is about paying for usage, not about owning. Paying to be able to access and stream music, instead of buying it at some point and listen to it whenever convenient. Well, maybe that’s for good since CDs are definitely not working forever. Just try playing CDs that were bought in the late 1980s or early 1990s. If they are still working, consider yourself as lucky. So maybe listening on-demand is a good thing.
No matter if you are ready to embrace that change or not, one thing is for sure: there is no way back to the ‘old model’. There is no chance denying that music streaming is the future. Currently Spotify might be the biggest streaming service but with Apple Music a major competitor entered the market earlier this year. Despite there is no doubt that music streaming already arrived, it still does not run profitable yet. Now, Rdio is set to file for bankruptcy, and already agreed on selling key assets to Pandora – for 75 million dollars.
Music Business Worldwide writes:
The move means that Pandora, previously a pureplay digital radio service, now has the platform its needs to become a fully interactive streaming service – taking on the likes of Spotify and Apple Music.
In addition to acquiring technology and intellectual property from Rdio, members of Rdio’s team will be offered roles with Pandora, subject to close of the agreement.
The transaction is contingent upon Rdio seeking protection in the United States Bankruptcy Court for the Northern District of California.
Upon approval of the proposed transaction by the bankruptcy court, Rdio will be winding down the Rdio-branded service in all markets.
Pandora is not acquiring the operating business of Rdio.
The transaction is subject to the approval of the Bankruptcy Court, which will supervise an auction for the assets of Rdio.
“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.”
Pandora said it expected “to offer an expanded Pandora listening experience” – which sounds very much like an interactive streaming service – by late 2016, pending its ability to obtain proper licenses.
MBW has previously speculated that Pandora’s new licensing deal with Sony/ATV may involve elements related to interactive streaming.
The Rdio acquisition news comes one month after Pandora bought ticketing firm Ticketfly for $450m.
“We are defining the next chapter of Pandora’s growth story,” continued McAndrews. “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 couldn’t be more optimistic about Pandora’s future and the future of 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.
Huge movements in the streaming market. But news are not only coming from Spotify, Apple Music, and Rdio & Pandora, but also from others: BBC wil enter the streaming market and supermarket chain Aldi just launched Aldi Life in cooperation with Napster. And of course, there is also Tidal, Deezer, Amazon Prime and many more. Any doubts that streaming isn’t the future? No matter if you like it or not: there is no way back to the old times. If you still want to complain that everything was better some years ago, go on but be aware that you might be wasting your time and energy.