Rdio Goes Free To Survive Streaming War

Music streaming platform Rdio is offering users six months free access to the subscription service as they manoeuvre to gain a greater share in the overcrowded streaming market.

Streaming services were foreign to Australia until early last year when the launch of Rdio and rara proved the catalyst for foreign companies to enter into the Australian market, previously only home to JB Hi-Fi Now. With local stakeholders admitting that the battle for market share in 2013 “will be carnage”, Fairfax have reported that Rdio have extended their free service offer to 15 countries – including Australia and New Zealand – after it began in the US.

Last December fellow service Deezer announced it would be offering users a full 12 months free to get its foot in the door, as it had been beaten to the antipodean market by the likes of Spotify, Rdio, Mog and rara.

Spotify and Rdio have previously formed partnerships with festivals, while Mog has a tie-in with Telstra's BigPond service. Under-the-radar rara also promised further expansion into the Australian market last October, but have yet to find a foothold.

Another service, Guvera, is re-launching early 2013 and today has announced the appointment of former Australian BBC sales director Scott Hamilton as the General Manager of Australian Operations.

Hamilton said today, “We have made strategic changes to our business model and along with our investors, we look forward to taking Guvera to the next level in Australia.”

Another service expected to launch soon is Songl, currently in its beta phase, while there is at least one other Australian-based service in development.

Industry experts have speculated that there will likely be a high attrition rate for services given the intense competition, and there could be as little as three or four services still standing by the end of 2013.

Internet radio Pandora launched late in 2013, but told theMusic.com.au that they didn't feel like the service was in direct competition with the other companies and therefore wouldn't be subject to the same issue.

Current streaming services in the Australian market include JB Hi-Fi Now, Spotify, Rdio, Mog, Deezer, rara, Songl, Guvera and Pandora as well as specific device-aimed Sony Music Unlimited, BBM Music, Xbox Music and Samsung Music Hub.

Myspace's relaunch and music discovery focus has been met with anger from the independent sector.

Visit theMusic.com.au on Rdio here.