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Rdio launching new budget music subscription option

Rdio is launching a new subscription option that provides an extremely affordable entry point to its music streaming service.

Rdio Select, as it’s to be called, will offer the ability to stream a maximum of 25 songs per day at a cost of just $3.99 (£2.53) a month.

The regular tier offers unlimited music streaming for $9.99 per month, which is identical to Spotify and other similar services. Rdio hopes that its new tier will help tempt in those who don’t want to pay this industry standard amount for ad-free music.

As for that seemingly restrictive 25 song limit, Rdio CEO Anthony Bay has told BuzzFeed that this number “is more than most users download in a day, so we feel it’s enough.”

Bay claims that the current model is restrictive and unbalanced. “We’ve all been flying airplanes that had business class only. There is no coach,” he said.

Related: Apple Beats relaunch: The story so far…

The new Select tier will only available in a few select territories to begin with, and the UK will not be among them. Initially it will be available in the United States, Canada, Australia, New Zealand, India, and South Africa.

Rdio’s push into this new price point comes at a time when it’s under threat from a dominant Spotify and a soon-to-be launched Apple Music. The latter will have the fully formed Beats Music service at its core, along with a host of features that leverage Apple’s strong position in the music industry.