Deezer is a historic application in the world of music streaming, which was created a few months before its Swedish competitor Spotify. The French application has since gained ground and found an audience, without the latter being comparable to that of its Scandinavian colleague.
The Parisian company has been standing still for several years now, while the world of music streaming is polarized between two major players:Apple Music et Spotify. However, the market is far from being 100% conquered and other players are trying to find a place.
This is particularly the case for YouTube and Amazon, which have had much less success. As far as Deezer is concerned, its success is mainly Franco-French. With 3.5 million subscribers announced in 2019, Deezer was then the number 1 service in France. But since then, the figures of the French company have not changed, unlike Apple Music and Spotify which have exploded their respective number of subscribers.
Faced with this situation and in order to break the inertia,Deezertherefore decided to go public. The latter is managed by banker Mathieu Pigasse, owner of the newspaper Le Monde. This businessman joined forces with another big name in French business: the Pinault family.
An IPO to catch up
With strong support, the company founded in 2005 under the name Blogmusik by Daniel Marhely hopes to find a second wind, having been ahead of Spotify in terms of subscribers. In 2013. But according to some, the success of the Scandinavian is only due to significantly more significant investments.
During their first years, Spotify managed to raise 3 billion dollars, while Deezer was entitled to 300 million. With much less funds, the app could not compete with its neighbor and was forced to follow suit, gaining very few subscribers.
Deezer therefore hopes that this IPO will bring in enough capital to invest in new solutions and thus convince Spotify or Apple Music subscribers to join the French company. To download Deezer on iOSfollow this link.
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By : Keleops AG
