Rdio is now beginning to introduce a mid-tier subscription for $3.99 a month for hopes that it will stand out from an ever-growing streaming market.
The new service, named Rdio Select, includes unlimited ad-free radio with no limits on the amount of skips, 10-track, artist curated playlists, and a 25-song-a-day streaming limit. Users would also be able to download and stored 25 songs permanently, changing their downloaded tracks everyday as long as they do not go over that number.
talking with Buzzfeed, Rdio CEO Anthony Bay states that the company thinks that 25 songs “is more than most users download in a day, so we feel it’s enough.” He said later that he hopes to bring in new users who are not willing to pay the regular $9.99 for ad-free, unlimited mobile streaming but are able to pay the lower option. “We’ve all been flying airplanes that had business class only, there is no coach,” Bay said.
Although there are no hard numbers, it is believed that Rdio’s share in terms of streaming is much less than that of Spotify’s. They hope that this new price can attract people away from the ad-based free streaming of their competitor. Spotify, at the moment, is the only on-demand music streaming service that offers a free tier, that has been under fire from artists such as Taylor Swift who have pulled albums from the service. it is no accident that Swift’s face is on Rdio’s homepage.
Bay told Buzzfeed: “We agree with Taylor Swift that on-demand playback of what you want to listen to shouldn’t be free.”
TIDAL, another one of Rdio’s competitors, offered two tiers; a 49.99 a month Premium and a $19.99 HiFi service, both of which are avaliable for discounted rates when purchased as a six-month pre-paid package. After buying Beats, Apple is expected to launch a streaming service for a $7.99 monthly fee with no free option. They have also been pressuring labels to leave free services such as YouTube and Spotify all together.
Although it is nothing permenant, Rdio Select is being offered as a 60 day free trial, which is plenty of time to fill the 25 daily tracks with as much as you like.