Music streaming service Deezer has gained a €100million cash injection from existing investors, including Orange. The company is based in Paris and is the third largest streaming service behind Apple Music and Spotify. Back in October, the company ditched its attempts to raise €300million through an initial public offering. Deezer was not able to convince investors that it was worth a valuation of €1.1 billion.
The Chief Executive of the company said that the funding they had obtained would allow it to continue as a leading global audio streaming service. Currently, the service is offered in over 180 countries and has over 6 million subscribers. It often partners with local telecoms companies to offer its services as part of a mobile phone contract- this is where Orange comes in. Orange was responsible for almost one quarter of Deezer’s revenue in the first quarter of 2015. It is the second biggest shareholder of Deezer and participated in it’s latest round of funding.
An executive at Orange said that people are listening to music on their phones now more than ever, representing a ‘massive’ opportunity for engagement and usage. However, whilst streaming services are becoming increasingly popular, Deezer is trailing behind the likes of Spotify and Apple Music- who have 20m and 10m subscribers respectively. All three of the streaming companies offer their services for around £10 a month. Spotify also recently announced that it had acquired two smaller businesses- Cord Project and Soundwave. Cord Project was founded in 2014. It’s main product is a voice messaging platform for mobile phones and it is said that they will be working on ‘creating compelling content experiences’. Soundwave is an Irish company founded in 2012 as a social network based around music. Spotify has said that acquiring this service will help to ‘enhance overall consumer experience’.
In an attempt to separate itself from it’s rivals, Deezer tailors its service to each local market. For instance, in the UK it offers its music content alongside Premier League football commentary, whilst in Germany it offers local language audiobooks. As with all streaming services, Deezer has to make royalty payments to copyright holders of music. For this reason, Deezer has never made a profit. In 2014, it suffered a loss of €27m on revenues of €142m.
Orange stopped operating in the UK after it merged with T Mobile to form EE. It continued to operate under the Orange brand for several years, but eventually was completed rebranded as EE.
If you need to contact Orange regarding your phone, be it for network issues, signal issues or to make a complaint, you can contact Orange customer services.