Spotify competitor Deezer sets sights on U.S.
The company says that it would consider coming to the U.S., if it could find a partner that helps it gain access to subscribers.
Deezer, a Spotify competitor operating internationally, has set its sights on the U.S.
Speaking to the Wall Street Journal in an interview published today, Deezer CEO Axel Dauchez said that his company is "looking for a partner in the U.S." that would allow it to gain access to a "significant volume of subscribers."
It's not clear what Dauchez is looking for in a partner in the U.S.
Deezer's service is available in 160 countries. The company offers two free hours of ad-supported music streaming, but also has monthly plans ranging in price from $9 to $12 a month for those who want to stream music to their mobile devices.
Deezer ostensibly believes that it can succeed where Spotify has faced significant trouble. Although Spotify came to the U.S. as a paid service for users who wanted tracks on different devices, it has quickly changed its tune and is becoming more Pandora-like by delivering a free mobile radio service. Spotify, however, still relies mainly on monthly payment plans to monetize its operation.
Earlier this year, Spotify financials revealed sobering performance. The company generated over $244 million in revenue in 2011, but lost a whopping $59 million. PrivCo, a company that sells data on non-publicly traded data, said that based on the company's financials, its business model is "unsustainable."
It's not clear how Deezer is faring, but the company is slightly smaller than Spotify. Earlier this month, Spotify announced that it had 5 million paying subscribers, including 1 million in the U.S. According to the Journal, Deezer has 3 million paying subscribers.