Deezer, France’s solution to Spotify, might be Valued at more than $1 Billion

watch out, Spotify. competitors with Deezer is ready to heat up.

by means of Elizabeth Segran

August 17, 2015 track-streaming platform, is in the hunt for capital from buyers that would result in a valuation of round $1.1 billion, Bloomberg reports. Sources accustomed to the subject, who disclosed the ideas to Bloomberg, asked to not be recognized as a result of “the method is still at an early stage and the valuation target may just exchange.”

This funding would enable Deezer to compete extra aggressively with Swedish music-streaming giant Spotify, which is supposedly valued at $8.5 billion. at present, Deezer has 16 million active customers a month all over the world, including 6 million paying subscribers, which puts it at the back of Spotify. The behemoth carrier has seventy five million active customers, of which 20 million are paying subscribers. (As some extent of comparison, Apple track’s free trial currently has about 11 million subscribers.)

Deezer, one of fast firm‘s most modern firms in song this 12 months, launched in 2007 but most effective made incursions within the U.S. a 12 months ago. prior to that, it used to be excited by expanding in Europe and Africa. With this new funding, it may probably fortify its presence within the American market.

Deezer’s technique for encouraging users to pay for subscriptions is to offer highly curated and specialized tune experiences in different territories; it also companions with other companies to create bundled subscription applications. In a few markets, for instance, it collaborated with cellphone corporations to offer subscriptions along with mobile-cellphone service. in the U.S., it partnered with Sonos and Bose to existing top quality music streaming to audiophiles who’re unhappy with the quality of sound on different products and services.

“We’re no longer actually competing with folks in the subscription area,” Deezer U.S. CEO Tyler Goldman instructed fast firm previous this yr. “We’re competing with free. the general public don’t pay for track these days since the worth of the service isn’t excessive enough.”

[by way of Bloomberg]