EnTech: Rdio Will Launch $3.99 Streaming Tier as Apple's Streaming Service Approaches

Rdio Will Launch $3.99 Streaming Tier as Apple's Streaming Service Approaches

Rdio is planning to launch a new streaming tier for $3.99 a month with specific limitations this Thursday, according to BuzzFeed. The news comes as Apple's new streaming service, a rebranded version of Beats Music that may be called Apple Music, gears up to launch next month.

Rdio says the service, called Rdio Select, will include two components: 1) Pandora-like streaming radio stations, without ads, and with the ability to skip ahead as often as you want, and 2) daily access to 25 songs of your choosing. Subscribers will be able to download the 25 songs and replace some or all (or none) of them each day, so long as the number doesn’t exceed 25.

Anthony Bay, Rdio's CEO, tells BuzzFeed that they chose 25 songs because it's "more than most users download in a day". He goes on to note that it also allows the company to not lose money at the price of $4 a month, saying that the company agrees with artist Taylor Swift that on-demand playback of music should not be free.
The move, according to Rdio, is an attempt to tap into a market that doesn't feel ready to pay $9.99 a month for streaming music. Similar to Rdio, Apple's new music streaming service will not offer a free tier. Apple plans on charging $9.99 a month for the service, which will have a focus on curated content. Apple's original plans for its new streaming service planned on, like Rdio, undercutting $9.99-a-month streaming services. Apple had reportedly wanted to offer its service for $5 a month and then $7.99 a month before backing down after resistance from record labels.
Earlier today, it was reported that it would incorporate social media tools for artists to share content with fans. The Cupertino company is also planning to offer a range of exclusive content from artists, which could use the new social media tools to do so. While Apple is still working on completing deals ahead of launch, it's still expected to debut at the Worldwide Developers Conference in June.