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Rdio Shutters Vdio

Closure Highlights The Difficulties Of Launching New Video Streaming Services 12/30/2013 5:29 PM Eastern

In a statement posted on Dec. 27, subscription music service Rdio announced that it was closing over-the-top video streaming service Vdio less than nine months after formally launching the service on April 2 to Rdio subscribers.

The move is the latest example of how some companies, such as Rdio and Intel, have been pulling back from the launch of over-the-top video services. Reports have also circulated that Amazon may have decided to postpone or shelve its plan for the TV set-top box.

Rdio had made the service available in beta in November of 2012 and had cut deals with some major content providers.

In a statement posted on Vdeo.com, the company noted “We have decided to discontinue the Vdio beta service. Despite our efforts, we were not able to deliver the differentiated customer experience we had hoped for. We want to thank all customers who have tried our service, and we have given gift cards to all those who have purchased content or have unused rental content.”

In the associated FAQ regarding the closure of the Vdio beta trial, the company added that it was likewise unable to create a "business model which was attractive to shareholders," noting that it stopped accepting new Vdio transactions on Dec. 27. Rdio said customers who purchased videos or have unused rentals will be offered Amazon gift cards in an amount equal to the total cost of their transactions on Vdio.

--  Multichannel News technology editor Jeff Baumgartner contributed to this report.

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