![]() Pandora’s Tim Westergren has made the case for lower statutory streaming rates to drive scale, it is probably time to start a parallel dialogue for on-demand streaming.īut lower wholesale rates alone won’t fix the problem. And that is a problem, because it is clear that for the economics of streaming to add up (for artists, services and labels alike) scale is key. To be clear, this is not to say streaming music is not a mainstream proposition, but that the $9.99 streaming subscription is not. ![]() We have had the product in market for over a decade, if it was going to hit hockey stick growth we’d have seen it by now. The problem is that the $9.99 streaming monthly subscription is not a mass market value proposition and it is not about to suddenly become one. However, and somewhat paradoxically, the US market should also have much much more space, plenty enough for Deezer, Spotify and the rest to flourish in. Also there is clearly a much bigger scale opportunity in the remainder of the globe. There is no doubt that the US paid streaming market is overly catered for at present, and that Deezer would struggle to get any foothold. ![]() The US is Saturated and Yet Potential Remains Untapped Like a canny general who decides to march around a heavily fortified stronghold and thus effectively leave it stranded behind enemy lines, so Deezer expects the streaming war to waged on different shores. Leaving aside for a moment the intriguing fact that the two streaming global super powers are European, Deezer has managed to slip beneath the radar of the often US-skewed digital music world view by pointedly deciding to ignore the US market (for now). Spotify’s investment is well documented, but this week Deezer confirmed their seat on the fast train with a $100m investment from Access Industries, which also just happen to own Warner Music. At one end We7 and MOG sell for peanuts in the middle Rhapsody, Sony, Rdio, Wimp, Rara and others continue to steadily build a market and at the other end Deezer and Spotify are sucking in investment with the force of a black hole. our musical heritage.The music streaming world is one full of contrasts and inconsistencies. ![]() "Defending Deezer is defending our culture. The fall in shares did not stop French Finance Minister Bruno Le Maire, who attended the ceremony marking Deezer's market debut, from praising Deezer for its stock IPO is not only an economic and technological success, but it is also a cultural success," Le Maire tweeted. It postponed previous IPO plans in 2015 due to market conditions. Services like Deezer and its rivals represent a shift in the music industry away from buying and downloading tracks and towards listening online to songs stored remotely.įounded in 2007, or just year after Spotify, Deezer has contemplated entering the stock market for years. "There's a question over their capacity to grow and yield profits," an industry source said.ĭeezer's stock listing was made possible via its merger with a blank-check company, I2PO, notably backed by French banker Matthieu Pigasse, Niel and Artemis, the holding company of the Pinault family which controls Gucci owner Kering (PRTP.PA).ĭeezer announced its stock market listing in Paris in April in a deal valuing the business at just over 1 billion euros ($1 billion).
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |