Published
Wed, Nov 18, 2015, 10:36
- The music streaming service, a precursor to Spotify in the US, owes millions to companies across the music business.
Rdio has filed for bankruptcy protection.
The streaming service, started by Skype founders Niklas Zennström and Dane Janus Friis, predated Spotify in the United States by about a year, and was heavily based around social features. Ultimately, as The Verge reports, it couldn't compete with the buzz surrounding Spotify or make the difficult economics of music streaming work in its favor. According to Music Business Worldwide, Rdio was losing between $1.85 and $2.4 million per month, and when it filed for bankruptcy on Monday, it reported around $30 million in unsecured debt. This included $2.4 million owed to Sony Music Entertainment, $1.17 million owed to Shazam and over $130,000 owed to Merlin BV, the indie label consortium. Pandora, a former rival streaming service, will acquire Rdio's key assets, including intellectual property and staff, in a deal worth $75 million.