Pandora has acquired Rdio for $75 million

Pandora, the long-standing online music service increasingly squeezed by newer competitors like Spotify and Apple Music, just made a move to reclaim its place in the music streaming game. The company announced this afternoon (Nov. 16)—hours after rumors first emerged—that it is acquiring on-demand music service Rdio for $75 million. Rdio will shut down its service and file for bankruptcy, and Pandora will offer Rdio’s on-demand streaming platform (which lets users instantly pick what songs they want to hear) alongside its radio-style service (which plays program-selected music based on genres, or “stations”). If all goes according to plan, Pandora’s listeners will be able to access the new feature—or what company executives call an “expanded Pandora experience”—in late 2016. Up until now, the service has championed its radio-centered user experience as wholly unique from the other streaming services out there. But the deal fills a real need considering that Pandora saw its stock sink 40% in one day after investors got spooked over the sudden success of Apple Music, and that it currently only offers a passive listening experience, while many others—including Apple Music and Spotify—offer both.