Music streaming service Deezer has filed an IPO, the French company has filed for an IPO on the Euronext stock exchange in Paris.
Deezer was founded back in 2007 and has 6.3 million paying customers, the new IPO could give the company a value of around €1 billion or $1.1 billion.
Company Growth and Financial Performance
In the IPO filing, some details about the company were revealed. Deezer had revenue of €142 million in 2014, showcasing significant growth since its inception. The company boasts a catalogue of 35 million music tracks and 40,000 podcasts, making it a substantial player in the music streaming industry. This extensive library allows Deezer to cater to a wide range of musical tastes and preferences, which is crucial for attracting and retaining subscribers.
Spotify was expected to file for an IPO before Deezer as it has more paid subscribers at 20 million compared to Deezer’s 6.3 million paid subscribers. However, Deezer’s strategic approach to market penetration and its focus on diverse content offerings have allowed it to carve out a unique space in the competitive music streaming market.
Strategic Market Positioning
Deezer has employed a slightly different tactic compared to Spotify. While Spotify has aggressively targeted the US market, Deezer has chosen to offer a niche music service in the US and has concentrated on expanding its presence in the rest of the world. This strategy has allowed Deezer to build a strong international user base, particularly in Europe, Latin America, and Asia. By focusing on these regions, Deezer has been able to avoid direct competition with Spotify in the saturated US market and instead grow its subscriber base in emerging markets.
The IPO should give the company the capital to expand its service further. With the additional funds, Deezer could enhance its technological infrastructure, improve user experience, and invest in marketing efforts to attract new subscribers. We suspect that the US could be its next major target when it has the cash in the bank. Entering the US market more aggressively could provide Deezer with significant growth opportunities, especially if it can differentiate itself from existing competitors through unique features or exclusive content.
Moreover, Deezer’s focus on podcasts is a noteworthy aspect of its strategy. With 40,000 podcasts in its catalogue, Deezer is well-positioned to capitalize on the growing popularity of podcasting. This could attract a new segment of users who are interested in both music and spoken-word content, further diversifying Deezer’s user base and revenue streams.
In addition to expanding its content library, Deezer could also explore partnerships with other companies to enhance its service offerings. For example, collaborations with telecom providers, device manufacturers, or other media companies could help Deezer reach new audiences and provide bundled services that offer added value to subscribers.
Source TechCrunch
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