In accordance with the pact, Cumulus, which owns the rights to over 500 radio stations, will acquire a particular equity share in Rdio’s umbrella company. In return it will lend advertisements for Rdio’s novel service. Moreover, Cumulus will be allowing Rdio full access to its programs. It will also showcase Rdio on its platform. What is in it for Cumulus? Online expansion is one of the goals.
The CEO said it so well: “This is our digital play.” Rdio meanwhile naturally gets a booster shot via this clever strategy of mutual aid. It can get even with Spotify through this systems upgrade of sorts. Rdio it seems is coming into its own.
The competition is getting more and more rabid as time moves on. Spotify launched its free service two years ago and it is flourishing. The top cat in the field, Spotify has a base of 24 million users. Millions subscribe to it too. Yet it is at present facing a slightly downward trend in its growth curve.
Meanwhile, Rdio currently has a nominal fee of $5 to $10 for its services. Rdio wants to team up with Cumulus in an effort at one-upmanship with Spotify. Cumulus and Rdio never took any money from each other in the compact. They are merely to exchange services that will prove salubrious for both parties.