The New York Times is reporting that the subscription-based online streaming service Rdio has made a deal with terrestrial broadcast giant Cumulus Media to provide advertising and content. Cumulus, which runs 525 radio stations, will advertise Rdio on its own stations in addition to providing content for streaming on the service.
It's a deal that works well for both parties, with Cumulus looking to enter the digital world as terrestrial radio's popularity wanes and Rdio looking to increase its own market share in the increasingly crowded streaming music market. Currently Rdio lacks a free streaming option, limiting its service to a tiered subscription option of either US$5 or $10 per month.
As part of this new deal, Rdio is launching a free ad-supported option, with Cumulus selling advertising that will run alongside the programming. There is no word yet on which of Cumulus' syndicated programming will be included on Rdio in the deal, but they handle everything from the Mark Levin Show and Mike Huckabee Show to weekly country countdowns.
The launch date for the new service hasn't been announced yet. Head over to the New York Times for the finer details of the deal. The news comes shortly before the official release of Apple's own streaming service, iTunes Radio.