Rdio subscribers may find their use of the music streaming service transitioned to Rdio Free following the company's announcement that new subscriptions will no longer be accepted after Nov. 23.
The move came after the company confirmed it has filed for bankruptcy, with the remainder of its assets to be acquired by Pandora. As a result, customers of its paid subscription service should expect to see their subscriptions automatically canceled on their next date of billing.
"Effective Monday, Nov. 23, if you currently have an Rdio subscription, it will be canceled on your next billing date, and you will no longer be automatically charged," said the company in a blog post. "Rest assured that your subscription will remain active for any period of time you've already been billed. Also starting Nov. 23, Rdio will no longer take new subscriptions."
The acquisition deal with Pandora is scheduled to be finalized by 2016 at the latest, with the Internet radio company stating that it wants to develop its own on-demand service through the use of the technology offered by Rdio.
"Adding Rdio's impressive technology and talented people will fast-track new dimensions and enhancements to our service," said Pandora CEO Brian McAndrews, as stated in an earlier Tech Times report. "I couldn't be more optimistic about Pandora's future and the future of music."
The deal is just one of those cases in which a rivalry between companies from similar industries reaches a point when the weaker competitor would end up joining the larger and seemingly stronger service. As a result, customers from the weaker service have no choice but to succumb to the remaining options, if they're lucky enough to even receive attention while also being assured that they can still access the service after the transition period.
"After your subscription ends, you can continue listening to Rdio Free (ad-supported stations on mobile or ad-supported, on-demand songs, albums and playlists on the Web) until the service goes offline," said Rdio.
While it is true that Pandora's radio-centric format has allowed it to enjoy smaller government-fixed royalty rates as compared to rivals, it has only managed to limit its audience to the United States, Australia and New Zealand. The deal with Rdio, which now has presence in 100 countries around the world, would allow the company to gain a stronger foothold against bigger names in the industry such as Apple Music and Spotify.
Rdio promises to keep in touch with subscribers through email, where it will provide information on other details such as the exact timing of its end of service and how users can transport their Rdio data such as favorites and playlists.
"Our goal is to make this transition as smooth as possible," said Rdio.
