Rdio announces plans to launch the cheapest music streaming tier at $3.99, goes head-on with Apple and Spotify.

With Apple all geared up to launch its new music streaming service next month, Rdio has announced its plans to launch a new streaming tier for $3.99 a month, reports BuzzFeed. The company says the new streaming tier will be called Rdio ‘Select’, which lets users listen to ad-free music streaming at high quality 320 kbps, while subscribers also get to download 25 songs per day for offline listening.

“The service, called Rdio Select, will include two components: 1) Pandora-like streaming radio stations, without ads, and with the ability to skip ahead as often as you want, and 2) daily access to 25 songs of your choosing. Subscribers will be able to download the 25 songs and replace some or all (or none) of them each day, so long as the number doesn’t exceed 25,” says Anthony Bay, Rdio’s CEO.

The company says that the move comes largely because it feels the market is not yet ready for a $9.99 a month music streaming service. Moreover, it also agrees with artist Taylor Swift, who firmly believes that on-demand playback of music should not be for free, as she pulled her music off Spotify in protest last year.

Just like Rdio, Apple plans to charge for its new streaming service, a re-branded version of Beats Music, likely to be called Apple Music, that launches next month at WWDC 2015. Apple had initially planned on charging $9.99 for the service, while some reports suggested that it might come down to $7.99 a month after sheer resistance from record labels, though pricing still remains a mystery at this point in time.

These are indeed tumultuous times for the music streaming industry. Spotify recently announced its financial results for the year last week, and despite its revenues being in excess of $1.1 billion, it posted a net loss of $1.8 million. Moreover, the past 12 months have been marked by the death of prominent music streaming services including Sony Music, Grooveshark, and Simfy.

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