Business

Rdio, MOG to start free streaming music service

Forget pay to play. Music on the Web is all about play and not pay.

Two more streaming music services, Rdio and MOG, are adding free versions of their services as competition heats up for online listeners.

Until now, both Rdio and MOG offered monthly subscriptions of up to $10 for unlimited access to their song catalogs featuring almost all the content a listener could want.

The free offerings will position Rdio and MOG to better compete for subscribers with the likes of Spotify, who just launched in the US and already has a free offering.

Music services hope that by offering a limited amount of access to free tunes, users will see the benefits of paying up for the full service that allows them to take the music on the go and store tracks on their mobile devices.

“The industry is moving toward a free marketing tool,” said Rdio’s Carter Adamson. “The real value proposition is around mobility.”

Rdio said it will launch the free offering within two weeks, which would coincide with Facebook’s f8 developers conference set for Sept. 22. Facebook is set to unveil platform upgrades that allow for easier music sharing among its members.

Rdio, MOG and Spotify will benefit from the Facebook changes, which will link their subscribers’ through the social network.

Free is seen as key to capturing the Facebook crowd, who will get to play with the services without the deterrent of handing over credit card numbers.

MOG and Rdio’s free services are different, but neither will say exactly how much free music a listener will receive a month.

MOG has developed a game-ified experience in which users get a full tank of music, which they deplete by listening to tracks and fill again by doing tasks such as telling friends of the service.

Rdio said its free model is not ad supported and does not require sharing with friends.