Last month, we reported that France-born streaming service Deezer was planning to be profitable by 2025.
The music streaming service announced the target in its H1 results, in which it reported that it saw its losses narrow by €8.8 million ($8.5 million) in the first half of the year. The firm also lost 300,000 subscribers as it failed to keep and attract users outside its home market of France.
Deezer CEO Jeronimo Folgueira said at the time that the platform is “convinced we can capture a fair share of the booming streaming market and continue improving our profitability to reach breakeven by 2025″.
In addition to this profitability pledge, at Deezer’s investor day in London on Tuesday (October 4), the company revealed that its longterm annual revenue outlook currently stands at €1 billion by 2025.
Deezer generated €400 million in FY 2021, and forecasts that its revenue for FY 2022 will be €455 million.
Elsewhere in Deezer’s investor presentation, available publicly on its investor site, the music streaming service reveals that it has “ambitious business development plans in large markets”.
Deezer reports that its share of the streaming market in its home market of France is 28%, and 16% in its second largest market, which is Brazil.
In Germany, where the company recently disclosed plans to expand via a deal with local broadcaster RTL, Deezer reports to command a 1% share of the streaming market.
Deezer also reports in its investor presentation that it is successfully rolling out price rises, with new B2C prices being rolled out in the US and Germany in October followed by existing iOS users in November. Brazil will follow in December.
The music streaming service’s presentation to investors of its ambitious growth strategy comes two months after it became a publicly-listed company in France via a SPAC deal with I2PO.
In August, the company revealed that it will be repositioning its brand to try attract younger users. The rebrand included marketing campaign in three of the company’s key markets: France, Germany and Brazil.
Deezer also recently made another bet on the live-streaming business as part of its wider strategy, with Deezer-backed, UK-born livestream company Driift acquiring another Deezer-backed livestreaming platform called Dreamstage. Deezer said the move will create a “livestreaming powerhouse”.
In addition, Deezer says it will be investing an additional £4 million ($4.3m) into Driift. As a result of the business combination and the additional investment, Deezer becomes the largest shareholder of Driift.
Music Business Worldwide