In a price sensitive society with technological advances, consumers are more conscious about their spending. The demand for online movie and music streaming are rocketing everywhere in the world. Rdio’s music streaming  service is a free to access on mobile devices in Canada, the U.S. and Australia. Traditionally a subscription-based service, Rdio gives its customers access to more than 20 million songs, chosen by algorithms that tailor the music to the listener’s tastes. As Rdio is the first provider of free music streaming in Canada, it has the competitive advantage over its competitors in the market. Not only in Canada, but Rdio also directly lures customers away from the well-know alternatives, including Pandora, Spotify, and iTunes Radio.

Rdio was created by the founders of Skype and has been opened for private beta testing on 3 August 2010. By applying the four growth strategies, we can observe that Rdio has been using market development strategy. By marketing its current product in a new market like Canada and Australia, Rdio is able to capture many new customers that its competitors cannot.

However, there is nothing as a free lunch. The only downside is that customers can only skip six songs per hour and there’s no rewind button after the Rdio Unlimited 14-days trial. The goal is to give users a taste of the Rdio streaming experience and persuade them to upgrade to the unlimited $10/month subscription. Rdio still has to pay for the licensing of all the music that’s streamed for free.