Spotify under fire for 'silly' free streaming model by Rdio executive

Shots fired at Spotify!

Published Tue, Jun 30 2015 12:25 PM CDT   |   Updated Tue, Nov 3 2020 12:05 PM CST

Spotify offers a free membership and $9.99 per month subscription to its popular music service, but the No. 1 streaming service is effectively cannibalizing the industry, according to Rdio CEO Anthony Bay.

Spotify under fire for 'silly' free streaming model by Rdio executive | TweakTown.com

"The idea that giving it away for free leads more people to buy is flawed. You will convert a large number of people who would normally pay for something to the free service," Bay recently told CNBC.

Rdio has a free offer to stream radio stations, $3.99 stripped down tier, and $9.99 per month unlimited version as it offers radio and streaming stations. Unlike Spotify, music listeners don't control the music they listen to - but can purchase songs if they like it. However, Spotify is willing to be patient and wait for free users to upgrade to the paid subscription:

"What they are all trying for is user acquisition, it's a land grab for users. A lot aren't focused on immediate profitability. That will come after users increase," said Jack Kent, senior mobile analyst at HIS, in a statement to the CNBC.

An experienced tech journalist and marketing specialist, Michael joins TweakTown looking to cover everything from consumer electronics to enterprise cloud technology. A former Staff Writer at DailyTech, Michael is now the West Coast News Editor and will contribute news stories on a daily basis. In addition to contributing here, Michael also runs his own tech blog, AlamedaTech.com, while he looks to remain busy in the tech world.

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