Vdio, an online service from Rdio designed to compete with iTunes, Amazon and Google Play in offering video content to buy or rent, shut down today. The company announced the news in a brief blog post. The service ended its beta phase abruptly after deciding it was "not able to deliver a differentiated customer value proposition or a business model which is attractive to shareholders."
Vdio will refund all purchased and unused rentals will be fully refunded with Amazon gift cards, though VIP promotional credits used by the service will simply disappear along with all personal account information.
Today's news marks the first major announcement from Rdio since the company brought on Amazon's former global head of digital video Anthony Bay as its new CEO. Rdio has struggled to compete with Spotify and other services from major players like Google and Apple, enduring a round of layoffs just last month as a cost cutting measure.
Despite Bay's experience with digital video distribution, the company clearly couldn't afford to keep Vdio running, though Rdio may take another stab at the video streaming market in the future.
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