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French, web-based streaming service Deezer, which has yet to officially launch in the U.S, has been vamping up its efforts here for the past couple years, amidst a rapidly growing international user-base. Currently, Deezer is available in more than 180 countries, with approximately 16M monthly active users and 6M paying subscribers. This is half of Spotify’s premium user base, quite a showing.

In September, Deezer launched its high-resolution audio service Deezer Elite in partnership with U.S. audio equipment company Sonos, which offers an on-demand music library of over 35 million songs¹. The move comes at a time when streaming companies are increasingly turning to niche opportunities within the high definition marketplace.

Oct 11, 2014 Deezer The US is the great white whale of the music business, and Deezer is aiming to snag it with a bunch of small hooks rather than one shining harpoon. Deezer, a subscription streaming-music. Deezer The world's second-biggest music subscription service is finally coming to the world's biggest music market. Deezer, which claims to have 5 million subscribers and 16 million monthly users. DEEZER BLACK CHARCOAL 40MM. DEEZER COCO CHARCOAL. Since 2011, Deezer Hookah has been offering the world our high-quality Deezer products, We supply only premium hookahs from around the world and offer fresh designs for each customer. We also offer a selection of glass and steel.

Deezer in France

Deezer was initially launched in France in 2008. CD sales still rule in France and physical product predominates over digital. But streaming, along with other digital music platforms, is quickly closing the gap mainly because of Deezer and Spotify. In 2014, revenues from digital music grew by 6%, and streaming, both ad-supported and subscription-based, increased by more than 30%. Physical revenue fell by 11.5%.²

Stream unlimited music with Deezer to discover your perfect soundtrack. And, with Deezer Premium, stream your music on all your devices - phone, desktop, Xbox One and more With Deezer you can: - Get your music on all your Windows 10 devices. Access your music more easily - Stream Flow, your personal soundtrack - Get personalised music recommendations from our Editors - Download your music on. These offers are non-binding, meaning you can cancel your subscription at any time. These offers are only available to users with no current nor previous subscription to any Deezer subscription tier, with no benefit from any previous Deezer promotion and no previous free trial to any Deezer.

Deezer has had the advantage because French content has seen an increase in general sales in 2013 and the beginning of 2014 and part of this boost has carried on into streaming. Deezer has benefitted both on the demand and the supply side, growing the market more than Spotify.

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On the demand side, the French spend significantly more on domestically produced creative works than on foreign works. Broadcast musical works are subject to quota rules whereby a minimum percentage of the songs on radio and television must be in the French language (France has it own Ministry of Culture). Deezer has also relied heavily on partnerships and acquisitions to enable a higher degree of local market penetration: it signed with TV talent show NouvelleStar and offered discounted 1-month subscriptions to the young audience of the show, the perfect demographic for streaming (Deezer also obtained participation in the show’s social media voting system, allowing quick access to viewers).

On the supply side, the French music industry has been subsidized by a change in the tax code made by President François Hollande: a 1% levy on smartphone and tablet sales that hurts Apple, Google, and Amazon. €86M euros ($97M) have been raised so far.³ Tech companies have been asked to support local musicians, writers, film directors, photographers, and painters, which increases Deezer’s engagement in music.

Deezer in the U.S.

For the U.S., it acquired Muve Music, the music division of Cricket, a mobile operator and subsidiary of AT&T. Muve offers a wide range of audio services, including radio, podcasts, and music downloads, and functions as a subscription based download store like Google Play. Deezer has now shut down Muve and migrated its libraries and playlists to its servers.

Deezer is expected to offer its mobile-targeted service for $6.99 per month, a better price point than Spotify’s $9.99. Billboard’s Andrew Flanagan writes that the intention is to segment the U.S. streaming market: Deezer Elite for high-end listeners and Deezer for Cricket for lower income listeners. Just adding Muve’s 2 million users to the as yet unaccounted subscribers of Deezer Elite would put the French service in second place in the U.S. after Spotify, currently with three times as many listeners.⁴

Deezer and Spotify

A Swedish and a French company are now at the forefront of music streaming in the U.S. They both offer access to music rather than ownership. Moreover, the new distribution model they represent is subscription-based, as if music were a utility to be paid in monthly installments. We are witnessing, in effect, a new European invasion, but this time it is an invasion of the means of music consumption.

This begs the question as to why the U.S. could not adjust earlier than Europe. Part of it has to do with an inherent egalitarianism in European culture, ultimately the legacy of two world wars in European soil and the devastation that led to welfare plans and more tax appropriation for the public good. Access to music was likely seen by Swedish and French entrepreneurs as a concept that was on par with ownership, and it may have taken the U.S. labels and even Apple a while to appreciate this. In any case, they were already highly invested in selling music piecemeal and by the time they realized that circumstances had changed, it was too late. Finally, in a continent where taxpayer money is used to pay for broadcast media to a much greater extent than it is in the U.S., the bulk financing of music purchases with subscriptions may not have been perceived as daunting.

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The U.S. labels, of course, are not powerless. Initially, they reacted to music streaming by buying approximately a 10% share in Spotify, which could now serve them well. They own the music masters that Deezer will play, and could hold the French service hostage to expensive licenses. Deezer’s final ‘establishment cost’ in the U.S. might not come cheap.

By Felipe Gonzalez Abad and Peter Alhadeff

1. http://venturebeat.com/2015/02/10/deezer-brings-its-lossless-elite-music-streaming-service-to-sonos-music-systems-globally/

2. http://www.billboard.com/articles/business/6458461/france-music-industry-revenue-streaming-revenues-grow-cds

3. http://www.nytimes.com/2013/05/15/business/global/france-urged-to-impose-tax-on-smartphones-and-tablets.html

4. Flanagan, A., Billboard, “Deezer Acquires Muve Becoming No. 2 Service in the U.S.”, Jan. 08, 2015.

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