Cumulus Media Inc., which last month announced the acquisition of a major radio network, on Monday announced it is acquiring a major financial stake in the parent company of Rdio, an online subscription music service.

Cumulus did not disclose details of the equity stake it is taking in Pulsar Media, but the New York Times reported Cumulus is providing more than $100 million worth of programming and ad services.

The deal will allow Rdio to launch free, ad-supported subscription products. Rdio will get Cumulus’ ad sales support in launching its products, which include music on-demand, custom playlists and exclusive content curated by Cumulus.

Cumulus said a five-year deal will give it an online outlet and access to exclusive content and other considerations for its approximately 520 owned and operated radio stations across the country.

San Francisco-based Rdio is a digital music service founded by Skype co-founder Janus Friis . It’s available in 30 countries. Cumulus said Rdio’s users can play and share more than 20 million songs and build a digital music collection that's available to stream on the web, on mobile and offline.

Lew Dickey, Cumulus’ chief executive officer, said consumers will be able to “listen to whatever they want, whenever they want, however they want.”

The deal may help Rdio keep up with rivals in the highly competitive subscription music industry dominated by Spotify, which launched ad-supported, free service two years ago, according to a Verge.com report.

“With competition in the web music space heating up, Rdio needs a shot in the arm.,” Verge.com reported. “Free music helped Spotify attract 24 million users and more than 6 million paying subscribers, believed to be the most among online music subscription services.”

Cumulus is the No. 2 radio company in the U.S. behind San Antonio-based Clear Channel Radio, which operates Premiere Networks, where Rush Limbaugh and Sean Hannity host shows. Last month, Cumulus announced it is acquiring the Dial Global radio network for $260 million in cash.

New York-based Dial Global is the last major independent syndication company, according to a report by AJC blogger Rodney Ho. It carries local talk show hosts Clark Howard and Herman Cain, both heard in Atlanta on 95.5FM and AM 750 News/Talk WSB. It also provides radio coverage of the Masters, NCAA basketball, Monday Night Football and the Super Bowl.

Locally, Cumulus operates several stations in Atlanta including Rock 100.5 (WNNX-FM), country Kicks 101.5 (WKHX-FM), top 40 Q100 (WWWQ-FM) and All News 106.7 (WYAY-FM).