Global music streaming service Pandora has bought several key assets from its peer Rdio for $75 million in an all cash deal. Pandora will only be acquiring Rdio’s technology and talent for furthering its business strategy and will not be taking on Rdio’s operations.
Rdio has also filed for bankruptcy in in the United States Bankruptcy Court for the Northern District of California. Following approval of the court, Rdio will be winding down its service in all markets including India.
Many members of Rdio’s team will be offered roles with Pandora and the company expects to offer an expanded Pandora listening experience by late 2016, it said in a press statement. Note that Pandora is only available in the United States, Australia and New Zealand and Rdio is present in 85 countries and maybe this would allow Pandora to expand rapidly to other geographies.
Separately, Rdio on its blog said that the service will not be interrupted today and that it will figure out what to do with Rdio accounts in the coming weeks. “We will have more updates in the coming weeks on what this process means for your Rdio account, but for the time being the service continues unchanged,” it said.
Tech Crunch notes that there is still a chance that someone could step in right now and buy the Rdio instead of Pandora. Rdio in its statement added that though it has filed for bankruptcy it is still required by law to entertain competitive offers during the bankruptcy process.
Rdio in India
Rdio launched operations in India in January after acquiring Dhingana’s operations in March 2014. At the time, MediaNama had reported that Rdio was signing partnerships with music labels and Dhingana co-founder Swapnil Shinde was driving them in India.
Dhingana was shut down in February 2014 amid issues of getting on board music labels on its platform. T-Series, Bollywood’s biggest music label, not renewing its contract was considered one of the main reasons of Dhingana shutting down.
In May 2015, Rdio had launched an on-demand subscription based option called Rdio Select for Rs 60 per month for Indian users. Users would get to download 25 songs at a go to listen to offline, which could be stored on their devices. The other available option replaced these songs with other tracks on a daily basis.
Grooveshark shutting down
In May again, online music streaming service Grooveshark shut shop after admitting to not getting licenses from right holders to stream music on its platform. This shut down was a part of a settlement between Grooveshark and record companies Universal Music Group, Warner Music Group and Sony Music Entertainment and Grooveshark does not expect to be resurrected.