- Deezer has 30 percent of the music download market in France with 9.6 million subscribers.
- But it is only strong in France: its users represent only 2 percent of the global market share.
- They lead the Swedish Spotify, Apple Music, Amazon and Tencent.
the streaming platform Deezerlaunched in 2007, was one of the first to reach the market that today is the most important in the world of music and generates millions in revenue.
But Deezer is far behind the leaders. According to information from Statista, in the second quarter of 2021, Spotify led this market with 162.5 million subscribers. Second was Apple Music, with a total of 78.5 million users. Behind: Amazon Music and China’s Tencent.
While it’s true that Tim Cook and Jeff Bezos’ music streaming companies have seen their account numbers grow in recent years, they haven’t managed to match Spotify’s numbers.
Deezer is in seventh place in that ranking.
But beyond those who win and lose, the truth is that streaming music is a key piece in the record market. In 2020 alone, it reported to the music industry about US$13.5 billion.
This represents an increase of more than two billion dollars compared to the previous year and 63 percent of the income generated by the sector globally.
Deezer debuts on the stock market and this happened
When it was announced in June that Deezer was going to debut on the stock market Euronext on July 5, many doubted the performance of the French streaming music platform.
And the doubts were founded: Deezer failed to attract investor interest and shares plunged sharply, publish Reuters.
Seven years ago, Deezer had tried to go public with another IPO, but the IPO was aborted.
Deezer shares fell 27 percent in the first five hours of trading this Tuesday, July 5.
While the music streaming business is booming, Deezer has too many rivals, and too strong ones.
Deezer is important in France, where it has 30 percent of the market share with 9.5 million subscribers. However, the platform accounts for just 2 percent of the global market, far behind Spotify (32 percent), Apple, Amazon, and Tencent.
According to analysts, the big problem for Deezer is that the other streaming giants have funds to spare, from other businesses, with which they can subsidize the platforms when the income is not enough to make a profit.
The operation was carried out through what is called a “spac” (a company without activity that goes on the market to join another company).
Deezer calculates that it will raise between 130 and 450 million dollars in the market, with a valuation of the firm at 1,150 million.
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