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Music Streamer Deezer Going (Almost) Global

  • Reuters, Wednesday, October 19, 2011 12 AM

As Swedish-born Spotify continues its global rise, French streaming music service Deezer is preparing to follow suit. According to Reuters, the start-up plans to launch in more than 100 countries in the coming weeks, and is currently in partnership negotiations with a dozen or so telecom operators. Unlike Spotify and U.S.-based Pandora, however, Deezer CEO Axel Dauchez says he isn’t bothering with the U.S. market and its high cost of entry -- for now.

"The minute that I tell the major music labels that I am not interested in signing for rights to the U.S., the negotiations over terms become much much easier," Dauchez tells Reuters. Rather, Deezer plans to focus its efforts on entering Germany, Italy, Spain, Turkey, Indonesia, Korea, Mexico and Brazil. “We aim to sign global licensing deals, without the U.S. or Japan, so we can roll out in dozens of countries quickly." Novel indeed, but, as Reuters remarks: “It's a risky strategy given that the music business generates the lions' share of revenues and profits in the United States.”

 

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