Music streaming service Rdio is now entering the on-demand video market. The company, which was originally founded by the creators of Skype, has announced the new and appropriately-titled Vdio service.
Vdio will offer movies and television shows in an a-la-carte way, meaning you won’t be buying a Netflix-style subscription. Instead of paying a set amount each month, Video users will pay about $3 to buy a TV show episode and $20 for a movie. Users can rent movies online for about $3 each.
So, why go the on-demand route instead of using a subscription-based pay model?
Rdio CEO Drew Larner said his company made this decision because it wanted to offer Vdio users the newest and best content. He’s got a point: Netflix, while offering a massive library of TV shows and movies, rarely offers either shortly after their launch.
But it’s hard to argue that Netflix also offers a whole lot more bang for the buck. For the price of about two movie rentals on Vdio, one can access a library of slightly older movies on Netflix for an entire month.
There’s also lots of competition in the on-demand market: similar services are available via iTunes, Xbox Live, and Sony’s PlayStation Network.
For the time being, Vdio content will be available for viewing on PCs and Apple’s iPad only. However, it’s possible the service will branch out in the coming months.
Oh, and Rdio subscribers who sign up for a $10-per-month unlimited music plan will get $25 to spend on Vdio content.