The Streaming Wars: Is $3.99 the Right Price for Free Music?
Rdio CEO: Music Hasn't Had 'Netflix Moment'
The digital music industry is grappling with a dilemma: how to make money without alienating consumers or record labels. Now, a smaller competitor to Spotify says it has a solution in a service that combines Internet radio with limited on-demand streaming for $3.99 a month.
The record labels are increasingly hostile to the idea of free, ad-supported subscription music services, while many music fans are unwilling to spend the $10 a month that has become the industry standard for unlimited subscription services. Rdio, a San Francisco startup that already offers a $10 subscription service and a free online radio option, is splitting the difference by launching a service today called Rdio Select. Listeners get access to an ad-free, Pandora-esque Internet radio service. They can also play music on demand but are limited to 25 new tracks a day and can store only 25 tracks at a time.