Failure – Rdio
- Current Company Value: SHUT DOWN
With companies offering music for free, trying to start a music streaming company is tough today. However, years ago it seemed like a good plan to try. Interestingly, the founders of Skype, Janus Friis and Niklas Zennström launched the company in August 2010. Yet the market at the time was pretty impressive as the new-look Napster along with Rhapsody, Deezer, and Spotify were already doing quite well. In 2013, Rdio started up a recommendation feature to form personalized albums or stations. Then in 2014, introduced a free option for streaming music that included advertisements. It is easy to forget, but Rdio did really change the game at first.
While they were newer to the music streaming game, Rdio managed to make it into 85 countries. They were also available on all streaming platforms. Rdio also reached agreements with four major record labels, the Merlin Network, and music aggregators like BFM Digital, The Orchard, and many more. Eventually, Rdio developed a social media format for music sharing. Yet by 2015, they couldn’t continue and filed for Chapter 11 bankruptcy. Pandora purchased the company for $75 million, and several of the Rdio employees were even hired by Pandora too.