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This could be an optimal moment for a Netflix competitor to step in given Netflix's recent issues.

Vdio will probably have the same content licensing and windowing issues. Not an easy hurdle to overcome.

If MSFT are backing them they $=infinity money to buy content.

MSFT is a little scared that Apple and Google will own all online content.

If MSFT can persuade Hollywood that Google is an evil monopolist and they are better helping a young MSFT upstart then they may get more content more easily.

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i'm not sure why you would think that Microsoft is backing them.
What a horrible name, trying to tell someone about the site would prove to be difficult.
I do think that's a valid concern. Whenever I recommend Rdio to people, I'm never sure how to say it. I usually say "R D O" but sometimes I think maybe it's "radio" or "Erdio".
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R-dee-o.

Love the service, but I was confused about how to pronounce it for the first few months.

The first thing I thought was Venereal Disease I/O.
As long as it can help beat the content providers more quickly into their only ultimately tenable position (all content available online, from one service or another), I'm all for it.

To be honest, I don't even care about price that much at this point in history. The fact that there are lots of movies and shows (Game of Thrones, anyone?) that are not digitally available at all is absurd.

Having more competing VOD services negotiating with providers can only make things better.

I'm sure that content producers want to be involved in an upstart by the founders of the filesharing network Kazaa.
As an rdio subscriber, a streaming video service that offered some sort of integration with rdio would be pretty interesting. A single subscription plan that would allow for unlimited streaming of music AND movies could be huge.