DEEZER EXPECTS TO BE PROFITABLE IN 3 YEARS
CEO SAYS MENA LAUNCH WILL SPEED UP GROWTH
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