Spotify Rival Deezer Launches Wide, Seeks U.S. Partner
January 4, 2013
Heavy-hitting music-streaming company Deezer wants into the U.S. market in order to increase its overall market share. The Paris-based Spotify competitor launched a free streaming service in late December in more than 150 countries. The service currently allows users two hours of free listening per month on desktops and laptops, marking the first time the company has offered a free service backed by advertising outside its native France.
“Deezer’s offer of a free streaming music service comes as a number of technology companies jostle for market share in a growing segment. In several countries, digital-music sales—both streaming and downloads—are set to overtake sales of physical CDs as the main source of revenue for music labels and publishers,” reports the Wall Street Journal.
“Anglo-Swedish music provider Spotify is among Deezer’s most recognizable rivals, and offers 10 hours of free content a month, which also includes advertising,” notes the article. “Deezer said it will also offer a promotional trial during which users will have unrestricted access to its advertising-backed free-service for a limited period; in markets where Spotify is available, such as the UK, the trial period will last for a year. The two-hours free plan, however, will be a permanent part of the company’s offering.”
Spotify is only available in 17 countries (as opposed to Deezer’s 160) but it has five million paying subscribers (compared to Deezer’s three million). Much of that edge has to do with Spotify’s presence in the U.S., where there are more than one million paying subscribers.
“We are looking for a partner in the U.S., maybe an operator or a blue-chip company, that is able to provide us with a significant volume of subscribers,” said Deezer CEO Axel Dauchez.
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