Music streaming service Deezer has today confirmed in a press release that it has closed a $130m funding round that makes Access Industries “a cornerstone investor in the company.”
French newspaper Le Figaro broke news of the investment on Saturday but Deezer had been quiet on the matter until now. Additionally the France-based company has announced that it has reached 2 million paid subscribers. Deezer says that it has 7 million active monthly users who have produced 100 million playlists.
The fresh funding comes from Access Industries, the US company founded by Russian-born Len Blavatnik. Access acquired Warner Music Group in 2011.
In today’s announcement, Deezer CEO Axel Dauchez hints at the company’s future direction, noting that it “is on the right track to becoming the leading digital music service worldwide and representing 5% of the music market by 2016.” Bold words indeed. The company began an aggressive expansion phase late last year, with the aim of launching in 200 countries worldwide, although not the US. With its war chest now suitably bolstered, that could be on the cards at last.
The 💜 of EU tech
The latest rumblings from the EU tech scene, a story from our wise ol' founder Boris, and some questionable AI art. It's free, every week, in your inbox. Sign up now!
Perhaps in reference to recent reports of rival Spotify’s continued struggles in the face of a mounting royalties bill, today’s press release touts the company’s profitable revenue model that “is the result of long and patient work with both the record labels and the artists themselves to create an offer built to their needs.”
Deezer had originally planned to announce the new funding at a press conference at London’s Abbey Road Studios on Wednesday this week, but after the story broke over the weekend, it says that the event will be used to detail its future expansion plans, which are likely to focus on editorial recommendation and playing to its wide global reach to help labels and artists reach new markets. We’ll be there on Wednesday and will bring you the news as it happens.
Image credit: AFP / Getty Images
Get the TNW newsletter
Get the most important tech news in your inbox each week.