Interview: Rdio CEO Says Subs Will Boom (But First, That Apple Problem)
But even so, Larner says Apple’s new subscription will make it “untenable” for Rdio to exist on iOS devices.
Talk about bad timing. Rdio, started by Joost and Skype entrepreneurs Niklas Zenntrom and Janus Friis, timed the announcement of its new iPhone app for Wednesday – which turned out to be a day after Apple (NSDQ: AAPL) said it wants to take nearly $3 of each $9.99 monthly subscription Rdio customers pay through the mobile.
“I would echo what the heads of some of my competing companies have said,” Larner says. “From a financial standpoint, that fee is certainly untenable for us, that’s obvious. If it creates a situation where it’s not financially possible for us to be in the environment, that’s a loss for consumers and I don’t think that’s a good thing. We’re still evaluating what the policy looks like and the ins and outs.”
Apple’s announcement matters because services like Larner’s, aggregators for content, are trying to turn the entertainment market from one in which content is bought as single units of consumer product…Read the full story at Paidcontent:UK