Will Deezer’s future be like Spotify’s or Tidal’s?

Deezer postponed its IPO because of unfavorable market conditions. Deezer is one of the world’s leading providers of on-demand audio streaming available from 180 countries and offering over 35 million music tracks and 40,000 podcasts. With €142 million in sales revenue in 2014, the French group founded in 2007 hoped to raise €300 million – which would make the company worth €1 billion – and its Director General Hans-Holger Albrecht introduced this IPO as “a key step in the continued development of (our) business.”

In a communiqué, Deezer said “it is assessing its financing options in the future” and affirmed its financing capacities allow it to “pursue its growth strategy.” Yet the marked increase in its number of subscribers currently at 6 million and in its global standing is now indispensable in order to withstand tougher competition in which Spotify and Apple Music count 20 million paying users for the former and already 6,5 million paying users for the latter although it’s been launched just four months ago.

By contrast, competitor Pandora was challenged in Wall Street where it lost up to 36% of its total valuation recently after having announced the loss of 1 million listeners in Q2 2015. The same happened for Tidal launched in March 2015 by Jay-Z which arduously reached 1 million users but could bounce back as a result of an alliance – if not sale – with Samsung against Apple. Against this background, a future consolidation of the audio streaming sector is conceivable.