On the international Internet radio front, French streaming service Deezer has big plans. They’ll launch in 100 countries in the next few weeks, but stay away from the US to avoid high royalties and stiff competition. While some may consider the US market critical to the success of an online streaming service, Chief Executive Axel Dauchez says there’s lots of online music opportunities globally, in lots of countries not serviced by the big shots in the US. Pandora for example is currently only streaming in the US and European based Spotify is only in 8 countries. Even Apple ITunes is only in 30 countries. “The music industry earns 80 percent of its profit in seven countries so there are many under-monetized countries.” said Dauchez. Deezer’s upcoming launch plans include Germany, Italy, Spain, Turkey, Indonesia, Korea, Mexico and Brazil.
Deezer, an on demand streaming service, offers both ad-free and ad supported subscription based tiers. They are privately held and have raised some 15 million euros from investors to date. They claim to have 20 million users signed up for its free streaming service in France. That should grow with their newly announced integration with facebook and this expansion.
Deezer has been successful in developing telecom relationships, in particular with France’s biggest mobile operator, France Telecom‘s Orange, in which Deezer’s ad-free premium service, which usually costs about 10 euros a month, was bundled into some smartphone and broadband offers. This has helped them grow their audience quickly. France Telecom now holds 11% of Deezer. Deezer reportedly has about 50 million Euros in revenue and will break even this year – if so, that’s an accomplishment that none of the US competitors can claim.