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streaming market: Deezer Elite for high-end listeners and Deezer for Cricket for lower income listeners. Billboard’s Andrew Flanagan writes that the intention is to segment the U.S. Deezer has now shut down Muve and migrated its libraries and playlists to its servers.ĭeezer is expected to offer its mobile-targeted service for $6.99 per month, a better price point than Spotify’s $9.99.
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Muve offers a wide range of audio services, including radio, podcasts, and music downloads, and functions as a subscription based download store like Google Play. 3 Tech companies have been asked to support local musicians, writers, film directors, photographers, and painters, which increases Deezer’s engagement in music.įor the U.S., it acquired Muve Music, the music division of Cricket, a mobile operator and subsidiary of AT&T. €86M euros ($97M) have been raised so far.
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On the supply side, the French music industry has been subsidized by a change in the tax code made by President François Hollande: a 1% levy on smartphone and tablet sales that hurts Apple, Google, and Amazon.
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Deezer has also relied heavily on partnerships and acquisitions to enable a higher degree of local market penetration: it signed with TV talent show Nouvelle Star and offered discounted 1-month subscriptions to the young audience of the show, the perfect demographic for streaming (Deezer also obtained participation in the show’s social media voting system, allowing quick access to viewers). Broadcast musical works are subject to quota rules whereby a minimum percentage of the songs on radio and television must be in the French language (France has it own Ministry of Culture). On the demand side, the French spend significantly more on domestically produced creative works than on foreign works. Deezer has benefitted both on the demand and the supply side, growing the market more than Spotify. 2ĭeezer has had the advantage because French content has seen an increase in general sales in 2013 and the beginning of 2014 and part of this boost has carried on into streaming. In 2014, revenues from digital music grew by 6%, and streaming, both ad-supported and subscription-based, increased by more than 30%. But streaming, along with other digital music platforms, is quickly closing the gap mainly because of Deezer and Spotify. CD sales still rule in France and physical product predominates over digital. The move comes at a time when streaming companies are increasingly turning to niche opportunities within the high definition marketplace.ĭeezer was initially launched in France in 2008. audio equipment company Sonos, which offers an on-demand music library of over 35 million songs 1.
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In September, Deezer launched its high-resolution audio service Deezer Elite in partnership with U.S. This is half of Spotify’s premium user base, quite a showing. Currently, Deezer is available in more than 180 countries, with approximately 16M monthly active users and 6M paying subscribers. French, web-based streaming service Deezer, which has yet to officially launch in the U.S, has been vamping up its efforts here for the past couple years, amidst a rapidly growing international user-base.