Technology

Deezer loses subscribers but confirms 2022 revenue plan

Established in 2007, Deezer holds just 2% of the global music streaming market, according to MIDiA, well behind leaders Spotify, Apple, Amazon and Tencent. (Photo: 123RF)

Paris. French music streaming platform Deezer lost subscribers at the end of the first half of the year, in more than a year, but reiterates its revenue target for fiscal year 2022, according to a press release on Wednesday.

As of June 30, rival Swedish platform Spotify, which made its first hectic moves in early July on the Paris Stock Exchange, had 9.4 million subscribers, up from 9.7 million at the end of the first half of 2021.

If the subscriber base in France is growing, then this decrease in the total number of subscribers can be explained, in part, by the fall recorded in the rest of the world due to the group’s new strategy of focusing on several markets. high potential keys,” said Deezer.

However, the average revenue per user (ARPU) for the year increased by 12.4%.

Deezer, whose stock market valuation fell to less than 400 million euros, also posted a 9.9% year-on-year growth in turnover in the first half to 219.4 million euros.

Enough to confirm its turnover target of “around 455 million euros” (+14% compared to 2021) for fiscal year 2022.

Established in 2007, the listening service holds only 2% of the global music streaming market, according to MIDiA, far behind leaders Spotify (31% market share), Apple, Amazon and Tencent.

Deezer’s strategy, which wants to more than double its revenue by 2025, is to bet on music, its universe and its technology, as opposed to Spotify, which is multiplying podcast launches, or Amazon, which is gaining ground in audiobooks.

To take advantage of the rapid growth in the global streaming market, Deezer first intends to join forces with players already established in several “key markets” to rely on existing customer bases such as operators Orange in France and Tim in Brazil, or recently with the RTL group in Germany.

Deezer also announced on Wednesday that it will hold an investor day on October 4 in London.

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