Deezer
For years, Spotify’s founder and CEO, Daniel Ek, has aimed to make the streaming service “the world’s number one audio platform.” Between its music, podcast and audiobook offerings, and its formidable market share, it arguably has become just that.
But there’s one form of audio that the service is less excited about: noise. Also referred to as “non-artist noise content,” “non-music,” “functional music” (a commonly used term that some disagree with), and more by Spotify and music industry skeptics, these tracks capture sounds like wind, bird calls and white noise, and have become popular for listeners to stream, often for hours on end, while they sleep, focus, relax or meditate.
As streaming services become increasingly interested in changing their royalty models, these noise tracks have provoked debate between those who believe the content has value and those who feel it takes away from traditional musicians. And as Spotify and Deezer lead the charge, creating new policies that lower the money-making potential of noise, could penalizing this form of audio free up new money for musicians and help curb artificial streaming?
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In early 2023, Lucian Grainge, chairman/CEO of Universal Music Group, drew attention to the topic when he began to speak out against noise tracks regularly. “Our industry is entering a new chapter where we’re going to have to pick sides, all of us are going to have to pick sides,” he said at Billboard’s Power 100 event that February. “Are we on the side of…functional music, functional content? Or are we on the side of artistry and artists?”
Those who work in the noise space, however, don’t see the debate as that black and white. “I hate that stance,” says Jordan Smith, co-founder of Arden Records, a label which puts out lo-fi, ambient and field recordings. “We’ve done a lot of nature stuff, including a project with the National Parks, where we’ve released nature sounds. Our artists will go on a hike and field record it. They’ve spent time, effort and energy into that. They shouldn’t be penalized because it’s a different way of listening.”
Some have even dedicated their life to this work. Birmingham, England-born Martyn Smith, for example, has recorded and released 30,000 hours of nature sounds, dating back to the mid 1960s, to streaming services. Smith and his team see it as a method of environmental conservation, given that so many of these habitats were destroyed or permanently altered after Smith recorded them. “When you get to dip your toe into a different world and see people who are committing so much time and energy to [these field recordings], it’s genuinely awe-inspiring,” Smith’s collaborator, Robert Shields, told Billboard previously.
Others don’t have such lofty, artistic goals with noise tracks. One music industry professional, who spoke to Billboard under the condition of anonymity, puts out white noise to make money on the side while working a traditional music job. While they admit they’ve been exploiting the streaming model, ultimately, they say, “Who am I to say what audio is valuable to a Spotify user and what isn’t? Maybe white noise is the only way that person can fall asleep.”
Grainge and others, like Warner Music Group CEO Robert Kyncl, see this form of content not as a value add or an artistic endeavor but as a way of siphoning money away from their businesses. “It can’t be that an Ed Sheeran stream is worth exactly the same as a stream of rain falling on the roof,” Kyncl told investors in 2023. The noise issue has become one of the points of attack in Grainge’s “Streaming 2.0” plan, which aims to revise streaming royalty models to unlock more money for “professional artists” — like the ones signed to major label groups. Along with downgrading the value of noise, it also includes other suggestions, like implementing a threshold of minimum streams to qualify for monetization and penalizing fraudulent activity.
As the CEO of the largest music company in the business, Grainge has gotten his plan implemented at multiple services already, including Spotify and Deezer. While streamers are largely neutral about where they send appropriate royalty payments, as long as it abides by their guidelines, it matters much more to label bosses, who depend on the growing size and proper allocation of the royalty pool.
It’s hard to gauge exactly how much money has been paid out to noise content creators over the years, but its popularity is undeniable. On Apple Music, the playlist “Rain Sounds” is its third most popular offering. In a quick glance on Spotify, one of many tracks featured on its “White Noise 10 Hour” playlist has 226 million Spotify streams and counting.
To combat the amount of money flowing toward this content, Deezer has elected to remove user-uploaded noise content altogether from its service, instead offering company-owned, company-made noise offerings that do not generate royalties. Spotify took a different approach. While it has allowed outside noise tracks to stay on the service, it downgraded royalty-earning potential by 80% in late 2023.
According to a Spotify blog post about these rules, “functional genres…[are] sometimes exploited by bad actors who cut their tracks artificially short — with no artistic merit — in order to maximize royalty-bearing streams… The massive growth of the royalty pool has created a revenue opportunity for noise uploaders well beyond their contribution to listeners.”
While many publicly celebrated these changes, others quietly worried about it. For David Green, founder/CEO of Ameritz, an instrumental record label that has also released field recordings, “When [Spotify’s new rules around noise] were announced last year, there was a bit of fear across all providers. I think it was across the board. You’d be surprised how many providers do this type of [noise content].” Like the anonymous industry professional, many who dabble in noise recordings do it to earn additional income on the side of more traditional music industry work. “Then there was the fear of, ‘Maybe this detection won’t be as accurate as it should be,’” says Green, and it could accidentally pick up music too, especially more experimental ambient works.
For decades, musicians on the cutting edge have experimented with the sometimes-blurry line between music and noise. Musique Concrète, for example, is an experimental form of music that dates back to the 1940s and uses a compilation of raw, found audio to create a sound collage. Ambient musician TJ Dumser, who releases under the moniker Six Missing, says he doesn’t like the idea of people playing the system with white noise, but adds, “I think the only concern for me is, ‘Where is the line? How do we draw the line from noise, ambient and even noise rock? Who is to say what’s not music to somebody else?’”
But one year in, Green says Spotify’s tool seems to be accurate at drawing that line between noise and music. Spotify confirmed to Billboard that to monitor and filter noise tracks effectively it uses Sonalytic, an audio detection technology it acquired in 2022 that can identify songs, mixed content and audio clips, as well as track copyright-protected material. A Deezer spokesperson confirmed that it has an “algorithm that has been specifically trained to detect non-music noise tracks,” but that the company also can manually whitelist tracks that could be detected as noise but actually are experimental music.
While this battle over noise content hit a fever pitch in 2023, determining the value of alternative forms of audio has been a much longer-running challenge for streaming services. In 2014, independent funk band Vulfpeck released Sleepify, a silent album, to Spotify. The band’s frontman, Jack Stratton, then asked fans to stream the 10-track album on repeat overnight while sleeping to fund the band’s upcoming tour. After the project earned an estimated $20,000, Spotify removed the project, saying it violated its terms of content.
The hope is that, over time, these increasingly stringent policies against silent and noise tracks will put more money into musicians’ pockets. Spotify estimates that its new streaming policies, including but not limited to royalty reductions for noise, will lead to an increase of $1 billion available to artists in its royalty pool over the next five years.
When asked for comment about whether or not these policies had their desired effects yet, just over one year in, both Spotify and Deezer have positive, but mixed, results. A Spotify spokesperson said these rules have decreased Spotify’s issues with spam and artificial streaming from noise and decreased the number of short noise tracks. A representative for Deezer says, “The level of fraud, at least in terms of number of attempts, is not directly connected to our catalog cleaning efforts. However, we have seen that fraud has decreased on Deezer between 2023 and 2024.”
French streaming platform Deezer reported on Tuesday it had 7 million euros ($7.6 million) in free cash flow for the fiscal year 2024, having achieved break-even status for the first time in its nearly 18-year history last fall.
Founded in August 2007, Deezer has struggled to build its brand outside of its home market in France. But in recent years, it has raised prices and expanded its subscriber-base by being the streaming platform powering German broadcaster RTL, American speaker company Sonos and Latin America’s version of Amazon, Mercado Libre.
“This is an exciting milestone, and it puts Deezer in control of its own destiny,” Deezer Chief Financial Officer Carl de Place tells Billboard on becoming cash-flow positive. “We have been able to exceed our guidance and to deliver 11.8% growth thanks to a nearly 10% increase in direct revenue from France, and the revenue from our partnerships business, which grew at 24% year over year.”
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A growing number of streaming platforms have raised prices in recent years, and Deezer was at the forefront having raised subscription prices in France, its largest market, in January 2022 and other markets later in the year. After Apple, Amazon, YouTube and Spotify all followed with their own increases, Deezer raised its prices again in September 2023.
The company reported revenue increased 12% to 542 million euros ($590.8 million), above their 10% growth target. Direct revenue in France increased 9.7% from the year ago period thanks to a 4.3% increase in subscriber revenue and greater average revenue per user (ARPU). Revenue from partners white labeling its services rose 24% year over year.
While not a profitable fiscal year, the company said it saw strong improvement. Adjusted earnings before interest tax depreciation and amortization (EBITDA) for the full year was negative 4 million euros ($4.4 million), and a 21.2% increase in its adjusted gross profit to 134 million euros ($146 million), equal to a 24.7% margin. The company had 62 million euros ($67.6 million) cash in its reserves at year end.
The company plans to double-down on its brand partnership strategy, while maintaining focus on further growing its presence in France with new features allowing users to customize their feed on the streaming platform and opportunities to more directly interact with artists, de Place says.
“Profitable growth is what you should expect going forward. We are prepared to continue to deliver positive free cash flow, to reinvest in the company and also add to our reserves,” de Place says.
Deezer, a leading French streaming service, says that roughly 10,000 fully AI-generated tracks are being delivered to the platform every day, equating to about 10% of its daily music delivery.
This finding emerged from an AI detection tool Deezer developed and filed two patent applications for in December, the company says. Now, the service is developing a tagging system for the fully AI-generated works it detects in order to remove them from its algorithmic and editorial recommendations and boost human-made music.
According to a press release, Deezer’s new tool can detect AI-made music from several popular AI music models, including Suno and Udio, with plans to further expand its capabilities. The company notes that the tool could eventually be trained to detect from “practically any other similar [AI model]” as long as Deezer can gain access to samples from those models — though the company also says it has “made significant progress in creating a system with increased generalizability, to detect AI generated content without a specific dataset to train on.” It has additional plans to develop the capability to identify deepfaked voices.
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Deezer is the first music streaming platform to announce the launch of an AI detection tool and the first to seek a concrete solution for the growing pool of AI music accumulating on streaming platforms worldwide. Given that AI-generated music can be made much more quickly than human-created works, critics have expressed concern that these AI tracks will increasingly take away money and editorial opportunities from human artists on streaming services.
Among those critics are the three major music companies — Universal Music Group, Sony Music Entertainment and Warner Music Group — which collectively sued top AI music models Suno and Udio for copyright infringement last summer. In their complaint, the three companies said Suno and Udio could generate music that would “saturate the market with machine-generated content that will directly compete with, cheapen and ultimately drown out the genuine sound recordings on which [the services were] built.”
“As artificial intelligence continues to increasingly disrupt the music ecosystem, with a growing amount of AI content flooding streaming platforms like Deezer, we are proud to have developed a cutting-edge tool that will increase transparency for creators and fans alike,” says Alexis Lanternier, CEO of Deezer. “Generative AI has the potential to positively impact music creation and consumption, but its use must be guided by responsibility and care in order to safeguard the rights and revenues of artists and songwriters. Going forward we aim to develop a tagging system for fully AI generated content, and exclude it from algorithmic and editorial recommendation.“
“We set out to create the best AI detection tool on the market, and we have made incredible progress in just one year,” says Aurelien Herault, Deezer’s chief innovation officer. “Tools that are on the market today can be highly effective as long as they are trained on data sets from a specific generative AI model, but the detection rate drastically decreases as soon as the tool is subjected to a new model or new data. We have addressed this challenge and created a tool that is significantly more robust and applicable to multiple models.”
In fall 2023, Deezer announced it was adopting an “artist-centric” royalty model with Universal Music Group (UMG) in an effort to better compensate acts with significant followings and the rightsholders who own their recordings. That move, intended to tackle fraud and reduce royalties flowing to what is essentially noise and “functional music” was intended to rebalance a streaming model that some major players believe needs reform. Other major labels followed, as did Spotify, which made different adjustments to its royalty model toward the same end.
On Wednesday (Jan. 15), Deezer and the French PRO SACEM announced a deal to compensate publishing rightsholders the same way. “We started a year and a half ago with UMG and then the other majors,” said Deezer CEO Alexis Lanternier. “And now we’re doing it on the publishing side.”
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SACEM’s interest in this idea goes back to an analysis of the potential effects of artist-centric royalty payouts that the PRO conducted last year. “The first thing I wanted was to remove noise from the revenue, especially at a time when dilution is an issue” said SACEM CEO Cécile Rap-Veber, “The second thing is that it helps prevent fraud.”
While Deezer will not remove any music from its platform as a result of this agreement, the service will either demonetize or essentially allocate less royalties to some tracks, by boosting the royalties earned by others. The change, which will take effect soon, could help labels and services better prepare for the age of AI, when music executives worry that online services will be flooded by unpopular, low-value music that cuts into their business with sheer scale. “With AI coming,” Rap-Veber says, “we’re afraid that human creation might be affected.”
Deezer’s specific plans are more ambitious than what it did on the recording side. Like other artist-centric models, artists get a royalty boost for hitting a measure of popularity — in this case, double royalties for songs that are actively searched out or those by artists with 1,000 streams a month from 500 different subscribers.
More interesting, the service will impose what it calls a “user centric cap” that will limit how much the listening choices of any individual subscriber can affect royalty payouts, which will also make fraud more difficult and less efficient. Also, Deezer will completely exclude from the royalty pool tracks that consist of noise and “functional sounds,” such as rain on a roof; instead, Deezer will recommend similar music that it owns, which will not count for payout purposes and thus not take royalties from other rightsholders. (Some of these tracks might not even be considered copyrighted works under EU law, at least on the publishing side. While recording the sound of rain on a roof might arguably involve creative choices, there is no composer in the sense of copyright law.) Deezer will also remove tracks that have not been streamed in a year.
UnitedMasters extended its existing synch agreement with the National Football League (NFL) through the end of the 2027 season. The deal will expand UnitedMasters’ existing track delivery, allowing the NFL to continue providing music to its fans at games and across NFL programming via UnitedMasters’ fully-cleared synch library. Through the deal, NFL Member Clubs will have the opportunity to explore additional licensing packages, allowing them to create “hyper-local experiences,” according to a press release.
Warner Music India made a minority investment in India-based live entertainment and ticketing platform SkillBox, which has worked on tours for Jacob Collier, Steve Vai, Ben Howard and more and established intellectual properties including Bloomverse, K-Wave, Lemonade and LiveBox. “By integrating live events and ticketing into its portfolio, Warner Music India will offer its artists the ability to reach wider audiences, while fans will benefit from streamlined, unforgettable live music experiences,” states a press release. SkillBox, which also boasts an artist management arm called LevelHouse, boasts 1.5 million users.
Music licensing company Soundstripe is partnering with Orfium, Tuned Global, Music Reports and Cyanite to build a “click-to-license” platform for the music business that will offer pre-cleared music, with a full rollout expected for spring 2025. “Through these partnerships, Soundstripe connects several elements of licensing, which have long been separate,” reads a press release. Orfium’s SyncTracker product will ensure that all licensed music has been cleared when a video posts to platforms including YouTube, while Tuned Global will manage content delivery and asset management on the recording side and Music Reports will cover the publishing side. Meanwhile, Cyanite’s AI-driven technology will allow Soundstripe to tag and search music at scale.
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Audacy launched its first FM broadcast station with Super Hi-Fi, a leader in AI-powered radio services for broadcast and digital media companies. From Oct. 31 onward, Denver’s Front Range Country 103.1 will be powered by Super Hi-Fi’s AI-powered platform and toolset, including its program director radio operating system, which manages music curation content, ads, scheduling, voice tracking and station playout tasks.
Streaming service Deezer signed DAX, an advertising exchange from Global, as its exclusive ad sales partner in the U.S. for audio advertising. DAX previously pacted with Deezer in the U.K.
Leading Asian music company Kanjian struck a deal with AI rights management company Musical.AI to provide AI companies with access to its fully licensed music catalog for AI training. According to a press release, Kanjian’s catalog is entirely pre-authorized for AI applications.
Levellr, which helps artists use messaging tools including Discord and Telegram to reach fans, raised $1.75 million in funding from a group of gaming and media industry leaders including Dylan Collins (SuperAwesome, Jolt, Demonware), Mitch Lasky (former Benchmark and Discord board member) and Owen Mahoney (former Nexon CEO), along with senior execs from companies like Krafton, Riot Games and Amazon. The company also announced that Collins will join the company as chairman.
Redeye Worldwide, a leading independent digital and phsyical distribution and music services company (and part of the Exceleration Music family), signed a strategic agreement with Lasgo Worldwide Media to provide physical fulfillmemnt services in the U.K. and Ireland. Additionally, Redeye will consolidate its European Union physical operations through an expanded one-stop agreement with Netherlands-based pan-European provider Bertus, allowing Redeye clients to broaden their sales and marketing reach across Europe. Redeye’s Swedish subsidiary, Border Music, will continue servicing the Nordic markets.
Alt-rock pioneers the Pixies and Tickets For Good, which provides free and heavily discounted tickets to live events, announced a new partnership through which the band will donate tickets to Tickets For Good across the platform’s global network for every date on their upcoming 20-date tour in Europe and North America next year. The partnership includes tour dates that are sold out, giving registered Tickets For Good members an opportunity to gain special access via a dedicated ballot.
Indie music company Anthem Entertainment and Wax Records struck a creative partnership that will focus on “enhancing the relationship between publishing and creative, facilitating a seamless channel for songwriters and artists to produce viable projects,” according to a press release.
AI-powered music and audio technology company Mus.ic.AI is integrating its AI tools into digital asset management and monetization platform SourceAudio. Under the deal, 567,000 active SourceAudio users will be provided with AI-powered stem separation.
Virgin Music Group announced a strategic agreement with Tokyo-based Bushiroad Music, a division of games and anime producer Bushiroad Inc. Through the deal, Virgin will support the expansion of Bushiroad Music’s overseas business through digital music distribution, including theme songs for Bushiroad’s games, anime series and films.
Deezer has appointed Pedro Kurtz as director of operations for the Americas, Billboard can exclusively announce today (Nov. 7). Kurtz—who joined the company in 2020 as head of music in Brazil and served as director of content for LATAM—will be based at Deezer’s Brazil headquarters in São Paulo and report directly to the global team […]
French music streaming company Deezer’s revenue increased 11.0% (13.0% at constant currency) to 134.0 million euros ($147.3 million) in the third quarter, the company announced Wednesday.
That was slightly slower than the 15% growth rate in the second quarter and first quarter but ahead of the 7.4% revenue growth the company posted in calendar 2023.
Partnerships accounted for most of the quarter’s improvement by growing 21% to 41.5 million euros ($45.6 million). Deezer powers music streaming services for such companies as Germany’s RTL and Argentinian e-commerce company Mercado Libre. Through partnerships, Deezer offers its branded service to the likes of DAZN, a sports streaming platform, and Mexican mobile carrier WIM, whose customers get a 20% discount on Deezer Premium.
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Subscriber growth was helped by the conversion of “the first cohort of MeLi+ subscribers from trial accounts to premium accounts with higher margins,” said CEO Alexis Lanternier during Thursday’s earnings call. Also, Lanternier added, the Mercado Libre partnership, which provides 12-month trials, has produced results “higher than our initial expectations.”
Revenue from France was 78.5 million ($86.3 million) and 58.6% of total revenue, down from 59.4% in the prior-year period. The rest of the world generated revenue of 55.5 million euros ($61 million). The “other” category was 6.7 million euros ($7.4 million), up 63.8%, in part due to new verticals such as its wellness app, Zen.
The growth in France and contraction in the rest of the world is part of the plan, said CFO Carl de Place. “The strategy has been to improve the profitability and moving to positive profitability for Deezer, which has made us be more selective in the way we invest, in terms of marketing and making sure we invest in markets where we can see that the return on the investment is positive for for this. So that’s the reason why we are growing in France and over the rest of the world has been declining.”
Direct subscribers represent the majority of Deezer’s business but grew at a slower 4% to 85.8 million euros ($94.3 million). The number of direct subscribers rose 4.1% to 9.9 million; 5.2 million of them came from Deezer’s home market of France while the rest of the world produced 1.8 million subscribers, down from 2.0 million in the prior-year period. Deezer’s subscriber base took a hit because the company removed 400,000 “inactive family accounts,” but the company explained that the move had no impact on revenue and benefitted gross margin.
Despite the positive momentum in the quarter, the company chose to maintain its guidance from the previous quarter. Deezer forecasts 10% revenue growth in 2024 and expects adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to improve to a loss of 10 million euros ($10.9 million) and plans to have positive free cash flow.
Deezer was among the first music streaming platforms to raise prices in 2022 and did so again in 2023. There will be “potential for price increases” as Deezer continues to “upgrade the experience to add value to the user,” said de Place.
Following the release of third-quarter earnings after the market’s close on Wednesday, Deezer’s share price was practically unchanged, falling just 0.4% to 1.345 euros ($1.46) on Thursday. Year to date, Deezer’s stock price has fallen 36% from 2.095 euros ($2.27) per share.
Deezer’s third quarter financial metrics:
Revenue: up 11% to 134 million euros ($147.3 million)
Total subscribers: up 4.1% to 9.9 million
Direct subscribers: down 1.4% to 5.2 million
Partnership subscribers: up 11% to 4.7 million
Direct subscriber average revenue per user (ARPU): up 5.8% to 5.40 euros ($5.90)
Partnership subscriber ARPU: down 4.7% to 2.80 euros ($3.10)
French music streamer Deezer reported a nearly 15% increase in revenue for the first half of 2024 and raised a key financial target for the year, according to earnings results filed on Tuesday (July 30).
The Paris-based company generated 268 million euros ($287 million) for the six months ending June 30 — up $35 million from the year-ago period — as average revenue per user (ARPU) improved for both direct subscribers and business-to-business subscribers by 6% and 3.5%, respectively.
Deezer executives called it a strong financial performance and said the company is on track to become profitable, as it was free-cash-flow positive in the first half of the year, with around 65 million euros ($70.4 million) at the end of June.
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“These positive results are [due to] strong performance throughout Deezer,” Stu Bergen, interim CEO of Deezer, said in a statement. “Deezer occupies a distinctive position within the music ecosystem,supporting artists, songwriters and rightsholders alike through initiatives focused on transparency, fairness, and innovation.”
Available in more than 180 markets, Deezer’s roughly 10.5 million subscribers was flat from the prior quarter.
The company raised its target for adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to a 10 million euro deficit, compared to Deezer’s previous expected deficit of 15 million euros for 2024, and reiterated its target to grow revenue by 10% for the year. Deezer generated 485 million euros ($525 million) of revenue in 2023, a 7.4% increase from 2022.
Last week, Deezer announced that ex-Walmart executive and consumer goods company founder Alexis Lanternier would become the streaming company’s next CEO, taking over from Bergen, who served as interim CEO after the previous CEO, Jeronimo Folgueira, left the company in February following a nearly three-year run in the role.
Lanternier co-founded and developed Branded, a digital-first consumer goods company, and was previously an executive vp at Walmart Canada.
Alexis Lanternier was named CEO of French music streamer Deezer, replacing interim CEO Stu Berger, the company announced Thursday (July 25). Lanternier, who will be based at Deezer’s Paris headquarters, most recently co-founded and developed Branded, a digital-first consumer goods company. Prior to that, Lanternier was an executive vp of Walmart Canada e-commerce and also […]
French music streamer Deezer reaped the benefits of its price increases as its first-quarter revenues grew 15.0% to 132.5 million euros ($143.5 million at the average exchange rate for the period). Average revenue per user (ARPU) also improved for direct subscribers and business-to-business subscribers from partners including Brazilian mobile carrier TIM and French retailer Fnac Darty.
Deezer raised subscription prices in France, its largest market, in January 2022 and other markets later in the year. After Apple, Amazon, YouTube and Spotify all followed with their own increases, Deezer raised its prices again in September 2023.
In the first quarter, ARPU for direct subscribers grew 6.4% to 5.1 euros ($5.50) as the latest price increase was implemented for over 75% of them, while ARPU from partnerships improved 5.5% to 2.9 euros ($3.1). Both ARPU figures have grown considerably in the last two years. Since the first quarter, direct ARPU has grown 13.3% from 4.5 euros ($4.9) and partnership ARPU has improved 20.8% from 2.4 euros ($2.6).
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Partnerships produced most of Deezer’s revenue growth in the quarter. While direct revenue from paid subscriptions grew 5.2% to 86 million euros ($93.1 million), partnerships revenue grew 40.3% to 43.3 million euros ($46.9 million); Deezer provides its streaming platform for its partners’ branded products. The company attributed partnerships growth to a recent deal with Mercado Libre in Latin America, RTL in Europe and Sonos. The company also renewed deals with TIM and Fnac Darty in the quarter.
The first quarter improvement “highlights clear momentum and evidence that our strategy is on point,” said interim CEO Stu Bergen in a statement. “By delivering unique experiences to music fans worldwide, Deezer delivers value and innovation to all our stakeholders. We continue to be a catalyst for positive change, challenging the status quo in remuneration and pricing, while maintaining our unwavering support for artists and songwriters.”
France accounted for the majority of Deezer’s revenue (57.4%), though revenue in the country grew just 8.5% to 76.1 million euros ($82.4 million) from the prior-year period. Revenue in the rest of the world jumped 25.2% to 56.4 million euros ($61.1 million) and accounted for 42.6% of revenue, up from 39.1% of revenue in the first quarter of 2023.
Although a relatively minor player on the global music streaming stage, Deezer has been influential in the music industry’s efforts to make streaming a more sustainable endeavor for musicians. In 2023, Universal Music Group partnered with Deezer for an artist-centric royalty scheme that aims to provide better royalties for professional musicians. Independent rights group Merlin followed in March.
Part of providing better remuneration to professional artists is removing non-music tracks (also called functional music) from the platform and Deezer’s earnings release confirmed the company has removed over 26 million tracks (non-artist content, noise and duplicates) since October 2023. The company also “enforc[es] a stricter provider policy to ensure exceptional quality content and elevate the user experience,” according to the release.
Looking ahead, Deezer maintained its previous guidance given in February: Adjusted EBITDA is expected to be better than -15 million euros (-$16.2 million) — about half of the -29 million euros (-$31 million) in 2023 — and revenue growth is expected at 10%, which would be an improvement from the 7.4% revenue growth it saw in 2023.