On-demand music subscription service Rdio announced the launch on Wednesday of Vdio, a video service that streams movies and TV shows. Vdio (pronounced vee-dee-oh) becomes the first video service offered by a standalone company that also offers an on-demand music subscription service.
The service is currently open to subscribers of Unlimited paid tier of Rdio in the U.S. and U.K. A user who logs in to Vdio will find the two accounts have been linked and social connections have been imported. To entice Rdio users to start using Vdio, all Rdio Unlimited subscribers have been given a $25 credit (£20 in the U.K.). The deal will be extended to anyone who subscribes to Rdio Unlimited in the next 60 days.
Vdio has a transactional model similar to that of Amazon On-Demand, not the all-you-can-eat subscription model of Netflix and on-demand music subscription services like Rdio and Spotify. The way video distributors stagger their releases influenced that decision. Larner explains that Rdio wanted to provide the best, newest content when it rolled out the service. Because of studios' windowing strategies, a movie or TV show will get a DVD and on-demand release before it's licensed to a subscription service.