Recent acquisitions position the company for broad-based services for music lovers and artists.
The on-demand streaming music app Rdio has been on the brink of bankruptcy, but earlier this week an announcement from Pandora may save some of the companies key technologies.
Pandora will acquire “key assets” from Rdio for $75 million, according to PC World. The company has been in bankruptcy and intends to ultimately end its current business.
Pandora is not buying Radio outright, since Rdio’s licensing deals are not transferable, and because the company wants to avoid the financial strain of acquiring the entire business. Instead, Pandora will take control of Rdio’s technology and intellectual property, and will be offering positions to some Rdio staff, though the company’s CEO will not be joining Pandora, focusing instead on the Radio bankruptcy proceedings.
Radio’s technology gives Pandora the potential to develop new platforms, expanding its current streaming system that allows users to tailor their musical interests with the click of a thumbs-up or down. Pandora also recently acquired Ticketfly, an online ticket broker for smaller music festivals and events. With another recent deal the company made with Sony/ATV Music Publishing, Pandora is seeking to be a one-stop shop for online music fans and musicians.
Pandora says it may launch its streaming music platform by the end of 2016. There is no timeline for ending the Rdio services or bringing its users into Pandora’s fold.
Pandora believes that music discovery is key to their core business. Currently 80 percent of the artists played on Pandora are not heard on terrestrial radio. Rdio drives users to new artists by sending messages when artists have new music available and by identifying artists who friends are listening to.
Pandora has also recently acquired Next Big Sound, a company that uses music analytics to help artists learn the kinds of music that fans like. Pandora’s Artist Marketing Platform allows artists to upload music and get listener data to track interest in their songs.