Rdio positioned for growth in music streaming market

The music streaming service Rdio is finally on track to deliver an updated Android app later this month or early in February.  The update will bring the Android app up to par with its iOS counterpart, with newer features and a more user-friendly design.

This announcement comes just days after Spotify, a competing music streaming service, revealed the end of its free unlimited service.  Users who opt not to pay for a premium Spotify account will now be limited to ten hours of music listening a month and a cap of five plays per each individual track.

Rdio’s free account option has long been limited, though the precise limit is unclear and is dynamically based on “user habits” .  Further, many users, will testify that it takes a lot of listening to run out your free allotment on Rdio — for example, I have never exhausted my account.  Both Spotify and Rdio offer several tiers of premium priced service.

It seems likely that as Spotify alienates its free users and Rdio simultaneously enhances its Android app to be as sleek and functional as the iOS version, we will see some shift in users away from Spotify and towards Rdio.

In a music industry with seemingly infinite access to music, any differentiation a service can provide is a huge advantage.  Rdio’s unique “limited” formula, competitive pricing tiers, and improved mobile apps are setting the service on a track with large growth opportunity.

Sources: Spotify early adopters will soon lose unlimited listening on free accounts , Rdio for Android update adds iOS look, feel, functionality from The Verge