The music subscription service, Rdio, has recently partnered with concert promoter Live Nation. As a result, Rdio will provide audio streaming on LiveNation.com and act as a sponsor for Live Nation-promoted festivals including the Sasquatch! Festival and the Watershed Music Festival. The partnership started last weekend and is part of Rdio’s efforts to gain more subscribing customers.
Resulting from Rdio’s recent partnership efforts with terrestrial radios, other services like Shazam and SoundHound, and Live Nation, Rdio has managed to increase its subscriber base. This article from Billboard describes some recent subscriber trends and numbers for the music subscription service:
Embracing live music requires being both online and on-site, CEO Drew Larner tells Billboard. Live Nation’s presence in country music gives Rdio an opportunity to gain visibility in front of country music fans. “It’s a demographic we want to approach and we felt this was a great way to hit that demographic.”
The company doesn’t share specific figures on number of registered users and subscribers, but Larner gives a couple examples of its recent growth. In Brazil, registered users were up nine-fold from June 2012 through June 2013, and up six-fold from January through June. Registered users were up six-fold from June to June.
Larner also points to the ranking of Rdio’s iOS app at iTunes as an indication of the service’s upward trajectory. Rdio rose to #1 among free music apps in June in the United States after steadily ranking between #10 and #20 for much of the year. It has also hit #1 in Australia, Canada, the United Kingdom and Mexico. “We’re killing it in Mexico,” says Larner.
What’s driving this growth? Larner says four factors are behind Rdio’s growth: partnerships, social media, marketing and the product.
Partnerships have been a growing trend for some online radio and music subscription services as they search for ways to add value to the listener experience. Most services already have the capabilities to allow users to buy music they listen to, but this connection with live music may act as a more effective link between the online and the offline experience. Many would argue that downloading music and streaming music are comparable, and many consumers do not find the need to own music if they can easily stream it online from any device in any location. The live experience, on the other hand, is irreplaceable. It cannot be duplicated online or through any music service.
As users browse the Live Nation site for concert tickets, they will also be able to listen to tracks via Rdio if they are subscribers, or listen to 30 second clips if they are not. This direct connection between music discovery and the live music industry may act as a funnel, driving new, and current fans to purchase tickets to a band’s live show. If this driver proves effective, artists stand to benefit more than they would from a download as touring generally brings in more money. In an article by Bloomberg, Rdio Chief Executive Officer Drew Larner describes this beneficial cycle: “Marrying what we do with streaming and discovery, and promoting artists with live music, is a natural fit. A streaming service like Rdio and live concerts can be a virtuous circle.”
No official date has been set as of yet for the integration of Rdio’s services into the Live Nation site.
What do you think about this partnership? Do you think Rdio could effectively drive listeners through its service to a live show?