Rdio Shuts Down Vdio Video Streaming Service Without Warning
Music streaming service Rdio has closed its video streaming service Vdio without warning. The video service was initially available to Rdio subscribers in April, and was launched publicly in June. Subscribers who had time left on their subscriptions or unused rental content have been offered Amazon gift cards to compensate for the shuttered service.
The company said that it had failed to differentiate itself from other video services, bringing disappointing results. The Vdio service was attempting to take on established competitors like Amazon’s streaming video and Netflix. Rdio still calls the cancelled Vdio offering a “beta service” on its website in announcing the closure.
Rdio had already had a significant layoff of up to one-third of its employees in November, according to TechCrunch, so cost savings are front of mind for the company. Rdio faces stiff competition in its core subscription music streaming service from services like Spotify. Free radio-style services such as Pandora and iTunes Radio are also a competitive draw, and in fact Rdio has launched its own app-based mobile radio service.