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NewsPoster Sep 16, 2013 07:12 AM
Reported Rdio, broadcaster deal could lead to free service in future
<a href="" rel='nofollow'>Rdio</a> could be offering a free version of its service before the end of the year, as part of a deal with a radio broadcaster. Expected to be announced later today, Rdio is said to be working with radio station operator <a href="" rel='nofollow'>Cumulus Media</a> that will see the streaming service gain access to the broadcaster's programming and offer an advertising-based free service, in exchange for stock.<br />
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A report from <a href="" rel='nofollow' target="_self" title="">the</a> <em>New York Times</em> states that the deal will have Cumulus owning a "significant equity stake" in Rdio parent company Pulser Media. Cumulus will also apparently sell advertising for a free Rdio service in the United States, as well as advertise Rdio on its network of 525 radio stations. Aside from a possible free service, Rdio users would also benefit from playlist generation from the stations, and additional non-musical content such as talk shows. <br />
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The deal will likely help Rdio in the long run, with the extra content likely to pull some subscribers in its direction, and away <a href="" rel='nofollow'>from Spotify</a>. A free service, rather than the current $5 to $10 subscription model, will also bring it in line with its main competition.
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