← Ideas Distribution 2 min

Should Be Huge: Rdio vs Spotify

One of these apps was better. The other one is the reason you forgot it existed.

The best-designed music app of its era went bankrupt. You are using the company that beat it.

Rdio launched in 2010, built by Skype's founders. Gorgeous, social, years ahead. By 2015 it was bankrupt and sold for scraps.

Spotify launched a year later and is now everywhere. The difference was not the product:

- Rdio delayed its free tier and bet on subscriptions. - Spotify launched free and ad-supported, and plugged into Facebook. - Rdio barely marketed and fell behind on mobile.

Spotify removed every reason to say no, and showed up where everyone already was.

Taste earns a loyal few. Distribution earns everyone.

Name a beautiful product that lost to a more available one.

The move. A free tier plus being where users already are beats superior design.

Rdio (2010, built by Skype's founders) was the best-designed, most social music app of its era. It delayed its free tier, underspent on marketing, and fell behind on mobile; went bankrupt Nov 2015 (~$200M debt), Pandora bought assets for $75M. Spotify launched free + ad-supported, plugged into Facebook, and sprinted to number one.


One of the things Alex keeps saying about go-to-market distribution. See the rest →

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