rdioAs the competition between music streaming companies intensifies, one of the ways the competition could outdo each other is to compete based on price, which is why streaming services such as Tidal are seeing a slower adoption as its premium price tag is putting some customers off from subscribing to it.

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In a bid to gain more subscribers in the face of Apple relaunching their music service, it seems that Rdio will be offering up a much more affordable pricing tier at just $3.99 a month, putting it way below most of the offerings in the market at the moment. This is according to a report from BuzzFeed who has heard from the San Francisco-based company.

However it should be noted that the $3.99 price tag comes with certain restrictions. Dubbed Rdio Select, the service will offer Pandora-like streaming radio stations without ads and allowing users to skip ahead as much as they want, and daily access to 25 songs of their choice and download them. These songs can be replaced but it is capped at 25.

Now 25 does seem a bit small number and somewhat restrictive, but Rdio’s CEO Anthony Bay believes that 25 is more than enough, at least as far as daily use is concerned. He also adds that by keeping it at 25, it allows them to offer up the service at $3.99 without losing money. Rdio Select is expected to be officially announced later today and will only be available in the United States, Canada, Australia, New Zealand, India, and South Africa upon launch.

Filed in Audio..