According to the MIDiA agency, in 2021, the number of global subscribers to music platforms rose to 524 million people. A nice market. But the little Deezer is already seriously behind its main competitors. That same year, Spotify held 31% market share (down slightly), Apple Music 15%, Amazon music and Tencent 13% respectively, YouTube music 8% (very strong growth), followed by NetEase and finally the platform hexagonal, with 2% of the volume.
Deezer admits it, the frog won’t try to outgrow the beef (Spotify). However, it can count on remarkable growth in the sector to support its development: +26.4% growth between 2020 and 2021, i.e. an increase of 109.5 million pairs of ears in one year, and an average annual growth rate 28% between 2016 and 2020. It will also be able to bank on the slow but undeniable erosion of its Swedish rival.
Market share of music streaming platforms in 2021
At the end of 2021, Deezer claimed 9.6 million subscribers, but still 120 million euros in operating loss over the year. The first objective will therefore be to achieve profitability. The second has already been unveiled by management: 1 billion euros in turnover in 2025. With the posted growth of 5.5% between 2020 and 2021, and a turnover which peaks at 400 million euros in 2021, it would actually take Deezer 17 to 18 years to achieve this goal. It will therefore be necessary to acquire new relays.
Which ? International expansion first. Today, the group is very present in France, Brazil (where it already has 2.7 million subscribers), then, more marginally, in the United Kingdom, Italy, Spain and the United States. . Partnerships then: Orange, FNAC, SFR are the advanced names in France, TIM Celular in Brazil and RTL in Germany. Finally, the penetration rate: Iris Knobloch estimates that in France the latter should increase from 18% in 2020 to 30% in 2027.
Drawing by Amandine Victor for Zonebourse