Pandora buying parts of Rdio for bankruptcy clearance – 99mac

The streaming music service Rdio requesting bankruptcy, and competitor Pandora announced that they buy “more parts “of the Rdio for $ 75 million.

The number of players in the streaming music business becomes less when Rdio yesterday filed for bankruptcy. In connection with the news stating, however, the competing service Pandora to purchasing key parts of Rdio in the form of “technology and intellectual property”. The price is said to be 75 million, corresponding to approximately SEK 655 million. Rdios CEO Anthony Bay will not move over to Pandora, but several other employees will get the job offer, reports Variety.

Pandora has long been more of a radio service other than a full-fledged streaming music service where subscribers can themselves choose which songs to play. Pandora currently offers the possibility to listen to the whole album, or create your own playlists, but instead creates a personalized radio station where the user can only change the track a limited number of times.

competition from services like Spotify and Apple Music is affecting Pandora hard, and now the planned changes. According Pandora CEO Brian McAndrews, the company’s goal to offer both the radio, music “on-demand” and live music under one roof. He says:

“We try to be the definitive source for discovering music and enjoy the world. We plan to broaden our subscription service significantly. “

According to Pandora, the plan is to offer its clients an improved service by the end of 2016. It is in the current location is unknown how Pandora will use assets from Rdio, but it would be natural to integrate the technology of Pandora to create a new music service with features that can meet the competition.

The purchase also get Pandora right to Rdios brand, but most likely Rdio not run as a separate service, subject to streaming music rights do not usually follow when a buy. Just like when Apple bought Beats last year would therefore Pandora still have to negotiate new agreements with record companies.

Another area where Rdio can be an asset in international expansion. Pandora currently has operations only in the US, Australia and New Zealand, but say they plan to establish themselves in new areas. Rdio however, are already available in about 100 countries.