Because Spotify had an ad-supported free service based on selling data and paying the bare minimum it could get away with to artists, while RDIO had a subscription-only service for a long time focused on music recommendations from friends. Spotify squeezed RDIO with its free tier and monetized its user data. After a fruitless trip into online radio, RDIO were bought out by Pandora.
Because Spotify had an ad-supported free service based on selling data and paying the bare minimum it could get away with to artists, while RDIO had a subscription-only service for a long time focused on music recommendations from friends. Spotify squeezed RDIO with its free tier and monetized its user data. After a fruitless trip into online radio, RDIO were bought out by Pandora.