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Rdio Shuts Down Its Video Streaming Service Vdio

All Vdio customers received an email, informing them that the service will no longer be available. The customers will lose all their purchased content, but will be refunded with an amazon gift card. The news comes at a surprise as the company already has a similar service in place for music streaming (Rdio), meaning they have a profitable business model in place that they can adjust to the new service.

Here’s what the company has to say about their service shutdown:

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.

Vdio.com

Vdio Screwed Up

Even though Rdio had set out to take on Netflix to begin with, it soon realised it didn’t have the resources and contracts in place to take on such mission. In the six months of its existence Vdio was more of an iTunes competitor as it only allowed users to rent or purchase content, unlike Netflix’s subscription model. The only thing it brought to the table was a beautiful design, but so do Apple and Netflix.

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It obviously didn’t stand a chance with Apple’s video rental and purchasing service, as iTunes comes pre-installed with all Apple devices and is automatically linked with the users Apple ID and credit card, Turning every single user into a potential customer.

Vdio also struggled to capture the attention of media and users and that’s what ultimately resulted in them having to shut down. The company only offered an iOS app and didn’t feel the hurry to develop apps for the connected media centres such as Apple TV, Roku and so on.

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For Users

The users are being reimbursed for all unwatched rented videos in form of Amazon gif cards. With the total shut down of the service the users should be grateful for getting anything back, but even then, as a user I’d feel ripped of because I don’t like being limited to gift cards (but maybe, that’s just me).

Now What

All Vdio users can take comfort in knowing that there are other companies that offer similar or better services. You might be interested in having a look at Netflix, Hulu and even Apple’s iTunes.

Let me know about your favourite streaming service below.