DEEZER EX­PECTS TO BE PROF­ITABLE IN 3 YEARS

CEO SAYS MENA LAUNCH WILL SPEED UP GROWTH

Digital Studio - - NEWS UPDATE -

France based global mu­sic stream­ing ser­vice Deezer ex­pects to be prof­itable in three years, ac­cord­ing to its chief ex­ec­u­tive, boosted by new mar­kets such as MENA, where it launched last month. Speak­ing to Ara­bian Busi­ness, Han­sHol­ger Al­brecht said the brand is fo­cus­ing on strength­en­ing its pres­ence in the re­gion, but es­ti­mates prof­itabil­ity by 2021 fol­low­ing its ex­pan­sion.

“There are very few busi­nesses where you have prof­itabil­ity be­fore in­vest­ment. We’re not go­ing to be prof­itable now, but in three years we do ex­pect to be prof­itable. We’re in new mar­kets where the op­por­tu­nity is huge,” he said.

“This year, the goal for our in­vestors is not prof­itabil­ity. They want us to fo­cus on grow­ing very fast,” he added. Deezer al­lows users to lis­ten to mu­sic from global record la­bels in­clud­ing Sony Mu­sic, Uni­ver­sal Mu­sic Group and Warner Mu­sic Group, but also fo­cuses on lo­cal con­tent.

Three months ago, it signed a distri­bu­tion agree­ment with Ara­bic record la­bel Rotana to of­fer users more re­gional mu­sic. The part­ner­ship will give Deezer an edge over global com­peti­tors such as Ap­ple Mu­sic and Spo­tify, which launched in MENA last week.

Deezer’s li­brary cur­rently boasts over 53 mil­lion global and lo­cal tracks, mak­ing it the largest one in the in­dus­try ac­cord­ing to Al­brecht.

Deezer CEO Hans-Hol­ger Al­brecht

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