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Rdio Believes Competitive Introductory Price Points Allow Them to Reach Broad Audience in Indonesia

Amir Karimuddin - 18 June 2015

The arrival of Apple Music is imminent and it will face tough competition entering music streaming business in Indonesia. Rdio is one service that offers very competitive pricing and claims to have more than 32 million songs in its database. We recently spoke with Rdio’s CEO Anthony Bay about Rdio’s focus in Indonesia and how it embraces local artists.

Rdio has been available in Indonesia for over a year. The Singapore regional headquarter is the one responsible for Indonesia’s operation and collaborating closely with local consultants in Indonesia (in this case Amity Asia). Bay said, “We employ local tastemakers around the world in various regions to ensure all users, including those in Indonesia, have a customized experience that incorporates local trends.”

Among all music streaming service, Rdio offers a very low monthly subscription. Its monthly pricing schem in Indonesia is only Rp 20,000 (or around $1.5). Most services are offered for more than $5 a month, with Apple Music is set at around $5.2 per month for personal account.

On this low price point, Bay answered, “Indonesia is a very important market for us, so we wanted to debut the service with an introductory price. We want music fans across Indonesia to have the opportunity to try a best-of-class streaming service, so a competitive introductory price point is allowing us to reach a broad audience.”

Not only about global music, when entering new market a big question raised about how it embraces local artists. Bay confirmed, “We are committed to localizing the Rdio experience in Indonesia, and continue to work with local consultants and influencers who can ensure the service reflects the culture. In fact, we recently held a music showcase for an independent local Indonesian artist. Additionally, by identifying emerging artists in Indonesia and featuring them on Rdio, we are able to deliver the region’s music to an international audience.”

With only five percent, at most, consumer paying for music subscription, it remains to be seen whether Rdio can capitalize big consumer potential in Indonesia into sustained revenue growth. Bay optimistically stated, “We view Indonesia and Asia as an important growth market for the company, and are dedicating resources in the region to ensure we are a central part of the emerging music streaming scene. We plan to continue conveying the value of our paid subscription services to music fans in the area, and hope to continue attracting new users.”

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