Rdio Switches On “Stations”

Just 12 business days after announcing a partnership with Cumulus Radio, Rdio introduces a major service change by releasing a free, unlimited version of its Internet radio capability to Android and iOS mobile devices, and rebranding it “Stations,” according to Kurt Hanson's RAIN newsletter.

As with similar offerings in Spotify (Rdio’s most direct competitor), Pandora and iTunes Radio, the Stations experience is ad-supported, or will be. At launch, mobile listeners will get an ad-free experience; desktop customers will see and/or hear commercials.

The announcement signifies quick progression of the quasi-acquisitional BizDev arrangement between Rdio and Cumulus, which includes handing over Rdio’s ad inventory to the Cumulus sales force. With Cumulus resources, Rdio adds an advertising component to its revenue model.

Pre-Cumulus, Rdio offered Internet-radio style listening as part of its paid subscription package in the mobile app -- new mobile users were granted a 14-day free trial. If the user canceled, the free version of Rdio’s mobile app became useless and Rdio lost a mobile customer. Desktop users got a better deal, with six months of test driving the subscription package, followed by a reversion to radio-style listening via a computer.

Rolling out uncapped listening in mobile brings Rdio to parity with its competitors. That’s an arguably overdue piece of positioning, and reflects back on the importance of the Cumulus partnership. Rdio is now a full-bore freemium service, with a feature set that traces a standard outline found in Spotify and iTunes Radio. Rdio’s business will continue to have a subscription side -- users may opt to dish out for accessing interactive features like on-demand listening and downloading.

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