Rdio acquires Dhingana. This is parallel to Rdio’s vision to expand globally. Dhingana has earlier said that they are shutting their operation in Feb 2014. The deal will be a new lifeline to the ailing Indian online music streaming industry. According to a FICCI-KPMG Indian Media and Entertainment Industry Report 2012, the Indian music industry achieved a 19 % year-on-year decline in sales of physical music which was compensated by a significant jump of 24 % year-on-year in digital music consumed last year.

One of the major challenges faced by Dhingana is the inability to get the licenses for online music. The high licensing fees also adds to the trouble.

Dhingana’s team in India will be joining Rdio to continue their mission of helping millions of users around the world discover the extensive and rich musical catalog of India. Effective immediately, Dhingana founders Snehal Shinde and Swapnil Shinde will join the executive team at Rdio, where they will work to continue Rdio’s expansion efforts in India as well as other emerging markets.

“Over the past seven years, Dhingana has worked hard to build a music platform that allows millions of users around the world to enjoy the diverse music of India, including a massive Bollywood catalog. We’re excited to continue this mission and further our reach with Rdio,” said Snehal Shinde, Co-Founder of Dhingana. “We look forward to working toward a unified launch in India through the Rdio brand in the near future.”

“Dhingana, with over 1-million songs in 42 languages and Indian genres has become synonymous with India’s love of music for its millions of users around the world.  We are excited to bring a new experience for millions of Dhingana’s loyal fans, to extend that to all Indian smartphone users, and join an amazing globally-minded team at Rdio,” said Swapnil Shinde, Co-Founder of Dhingana.

About Rdio

Rdio is the groundbreaking digital music service that is reinventing the way people discover, listen to, and share music. With on-demand access to over 20 million songs, Rdio connects people with music and makes it easy to search for and instantly play any song, album, artist, or playlist.

Launched in August 2010, Rdio is headquartered in San Francisco and was founded by Janus Friis, the co-creator of Skype. Available in countries all over the world, Rdio is funded by Janus Friis through his investment entities. They offers ad-supported free streaming service and ad-free subscription services in 35 countries. Rdio also offers social networking, allowing users to share playlists and follow others to see what music they listen to.

The major players of online music streaming in India are Gaana.com, Saavn, in.com etc. Once Rdio starts their India operations, it might pave way for new developments in this space and leading to new acquisitions. Rdio’s experience in streaming music over other countries and Dhingana’s young and dynamic team provides the edge which is needed to compete with stronger players like gaana and saavn.