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| Rdio Acquires New Music |
Rdio, an Internet radio service, which operates in 13 major
markets, has just acquired the catalogs of CD Baby and TuneCore. This major
deal settled between these online music services helps raise Rdio’s catalog to
over 18 million songs.
This deal was not an easy task for Rdio and faced many
challenges along the way. CEO Drew Larner said in a statement “Obviousy the
self-service aspect of what these guys do is going to bring a lot of indie
music to the platform. We had a couple of issues we had to get over in terms of
getting these deals done, but I'm pleased we did finally get them done because
it's an important step."
Currently Rdio is working on a system in which artists get
paid directly
and do not experience reduced ownership with time. As stated in the
article, Rdio wants to be seen as “Artist Friendly.” Clearly the success of
Rdio has increased significantly since 2010 starting with 7 million songs and
now just over 18 million songs, an 11 million-song increase in two years.
Although Rdio has shown dramatic revenue increase and
popularity, they still have hopes to attaining the music catalogs of the
Beetles, Pink Floyd, and Led Zepelin. However, this is highly unlikely to
happen. Larner does mention that his goal is to acquire the large range of
artist-owned catalogs and out of print music still out there.
In a business aspect this is great for Rdio, CD Baby, and
TuneCore. Rdio has increased their image drastically, and CD Baby along with
TuneCore have entered a new business acquisition in which they will benefit
financially due to the extra source of income that Rdio will be paying them.
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