Deezer – The Takeover

DeezerApplats_CMJN_NoirDeezer is the newest music subscription to hit the market.  Deezer was born in 2007, a native of France.  Since its conception, Deezer has sold over 16 million monthly listeners on its service.  Of that number, five million are paying subscribers.  What this means is that Spotify has competition.  Spotify has double the amount of paying members than Spotify has.  This number is due to change when it hits the US.

The company’s design will allow anyone to use an unlimited amount of music for a small fee that’s paid monthly.  Right now, Deezer is in 182 countries.  That’s amazing considering there are less than 200 nations.

You don’t have a label to be a part of Deezer.  You can still get your music played on Deezer.  You can even offer your portfolio through a third party.  With a a third party connection, you don’t need to worry about distribution, licensing or administrative policies.

Coming to America

Once Deezer penetrates the US, it’s going to be a massive explosion.  The United States is the largest market by far in the music industry.  There are numerous of other programs like Spotify and Soundcloud, however, Deezer dares to be unique. It would be typical to operate a clone to their programming. Deezer’s not your ordinary service.  Chief Executive for Deezer in North America, Tyler Goldman, said “what would be crazy is to do the same thing they did and receive less results.”

The Start-up

However, Goldman would not comment when asked how much of an impact Deezer has made since connecting with the third parties.  He did say that the difference was “relative to what other services have already…”.  The fact that he’s not talking, speculation would have it that the numbers are not what he expected. Although it’s only been a few weeks, the numbers should climb.

Companies such as Amazon, Apple and Google participated in the start-up, Spotify, however, the anticipation of Spotify did not measure up to everyone’s expectations.  Spotify is valued at $371 million.  While it sounds impressive, it’s only 17% of the 2.2 billion they reported from digital sales.

Slow Growth

Nonetheless, Goldman did say that usually dissatisfaction and unfamiliarity are what attributes to limited sales.  With music streaming being a growing industry, Goldman has decided to take a new approach when it comes to breaking into the US market.

Through partnerships with various companies, Deezer is able to make a breakthrough into the states.  One of its partners is Sono speakers.  Following is the Bose company, a legend in the speaker industry.  Deezer and Sono have teamed up to offer “Elite” packages for half the regular price for a year’s subscription.  This will allow the listener to stream music at a reasonable price.

A Premium Plus package offers a month to month service at a lower price ($4.99) for those who enjoy Bose SoundTouch and SoundLink. This is at half the price of the regular rate of $9.99.

As music subscribers sign up, the amount continues to rise from the 30 million current users.  However, the same number suggests that they are not happy about paying for music or about the services the subscription offers.  Deezer offers a different way to pay for records, downloads or CDs.

Plans to Invade

Goldman went on to say that Deezer will schedule a bunch of “sub-segments” over the next year with the intent to release to the public.  The plans are to launch in extremely large groups, rather than flood the country all at one time.  This campaign will be different and larger than with Sono and Bose.

Consequently, his approach, some say, may not be US friendly.  The population is diversified as well as the people’s taste in music.  However, Goldman assures that the program will cater to its audience based on interest.  This is how his marketing strategy will stand out above the rest.  Deezer also offers podcasts, over 20,000 shows covering news, sports and entertainment.  There’s also rumors of talk radio coming to Deezer.

It doesn’t stop there.  Deezer has teamed with mobile carriers to do what Apple and AT&T did with Beats.  Well, Beats is not reaping what was sowed.  It currently has a small group of paying customers.  AT&T reports that Beats has an active membership of only 250,000 subscribers.  But don’t count Deezer out of the race yet.  The company is hopeful for an extremely bright future.

Conclusion

Deezer has over 16 million listeners worldwide.  It’s promise is to provide a change for its audiences and artists.  Deezer will let you keep all of your music in one place, you can listen to music at your leisure, and take its 35 million song library wherever you go.  Discover new artist and their songs on all of your wireless electronics, without limitations.  It works while you are online or offline.  It’s great to have while working out, at work or chilling at home.

 

 

 

 

 

 

 

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