In a deal similar to the partnership they announced with Cumulus last fall, Rdio and Grupo Bandeirantes have announced a joint venture and powerful strategic partnership encompassing marketing, distribution, content and promotions that will significantly expand Rdio’s presence in Brazil. It’s a nice move on the part of the smallish streaming service. Under the leadership of CEO Anthony Bay, the company has been pursuing aggressive marketing tactics and forming alliances like this.
Brazil is the largest economy in Latin America and the second largest in the Western Hemisphere. It’s also the seventh largest economy in the world, and growing quickly. Music and culture thrive in Brazil, making it an attractive play for streaming services. Spotify and Deezer are both streaming in Brazil, and Rhapsody has a carrier deal with the country’s largest mobile phone provider Telefonica while Muve, owned by Cricket Wireless has a deal with the country’s second largest ISP, TIM. (Of course, youtube claims its share of streaming music listeners as well.)
While mobile technology and adoption is strong in South America, challenges such as low credit card penetration make subscription services without a carrier or other mass billing backbone a potential challenge to Rdio’s plans. This deal will support their marketing and brand awareness efforts as well as lend credibility.
“Global expansion and localized customer experiences are key focuses for Rdio. Brazil is one of the most dynamic countries in the world with a vibrant music culture. In fact, Sao Paulo and Rio de Janeiro are among the top cities for Rdio users in the world,” said Anthony Bay, CEO of Rdio. “We’ve had success in establishing a unique customer value proposition with our partners in other territories, and this partnership allows us to create a more diverse, all-encompassing listening experience in Brazil that travels from radio to TV to online to mobile.”
In the global streaming game, Rdio’s unique strategy of partnering with existing traditional media companies seems like a good idea, giving those companies an online audio extension, and helping Rdio extend its share of the streaming market.