Rdio to Pay Artists $10 Per New Subscriber

10:12 AM, Oct 2, 2012   |    comments
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LOS ANGELES (AP) - Music subscription service Rdio is looking to dispel the notion that streaming services underpay artists for their work. Starting Tuesday, it will start paying musicians $10 for every person they convince through social media to sign up for an Rdio plan.

The move is an attempt to attract users in a field that has seen tough competition from the likes of Sweden's Spotify and Rhapsody in the U.S.

Subscription music services are gaining in popularity. For $10 a month, they allow users to stream an unlimited amount of songs on mobile devices. Users can select from millions of tracks, including those off the latest albums.

But some prominent artists like Adele and Coldplay have kept their newest work off the services because of fears of hurting album sales.

(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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