Retail & Consumer : DEEZER
DEEZER is a music streaming subscription service based in France but aiming to spread out in 200 countries. In October 2012, Len Blavatnik who is the owner of Warner Music invested $130m in the French company. He said that DEEZER was a “state of the art music subscription service with enormous potential”. According to Hypebot.com, a music news blog, DEEZER is number 1 or number 2 most popular music streaming service globally.
The French company is already present in more than 180 countries whereas its competitor Spotify has essentially a strong presence in English markets, particularly the US and UK. DEEZER has a large music track library with 30 million titles available. A tie-up with Facebook, allows users to send music to one another.
DEEZER also partners 25 Telecom operators worldwide. Its partnership with Orange, for example, allows it to reach the mass-market of the operator’s contract customers in the United Kingdom.
DEEZER has a basic free web streaming plus two subscription services for higher audio quality and availability on mobile devices, tablets, internet-connected TVs and offline.
Mark Foster, managing director of DEEZER UK said that one of the strengths of DEEZER is its editorial recommendations which allow people to stay in touch with and discover new artists and for artists to find new fans. In these cases, DEEZER pays the rights holders who then take that cash and pay the artists.
CEO Axel Dauchez has said that DEEZER is looking for a partner, with a significant volume of subscribers in order to introduce a service in the US which is the world’s largest music market but where it doesn’t have a presence so far.
With strong evidence that consumers are increasingly embracing streaming services, Google and Apple have been attracted to the market and become future competitors. However, Axel Douchez believes that his company is on track to become the “leading digital-music service worldwide, representing 5% of the global music market by 2016”.
Sources : Wall Street Journal, Financial Times, pcadvisor.co.uk, themusicvoid.com, London lovesbusiness.com, Hypebot.com
Video source : http://www.siliconrepublic.com/new-media/item/33125-daa2013
Online publishing, August 20th, 2014