BlackBerry, the Canadian smartphone maker, is scrapping paid music-sharing service BBM Music in June following a review of its strategy.
BBM Music, which cost $4.99 a month, will be discontinued on June 2, and subscribers will be given 30 days free access to the RDIO music service, the Waterloo, Ont.-based company said yesterday. BlackBerry didn’t elaborate on why the service, which began in August 2011, was shutting down or whether it was profitable.
The company formerly known as Research In Motion Ltd. has cut 5,000 jobs and shut down six of 10 manufacturing sites in the past year to restore profitability as sales continue to fall.
BlackBerry last week reported a surprise profit and said it expects to be about break-even this quarter, helped by the cost reductions and demand for the new BlackBerry Z10 phone.
BlackBerry competed with free services like Spotify and Pandora Media that allow users to listen to a selection of songs interspersed with advertising.