Deezer’s on the up with Q3 growth under new CEO
Deezer’s 2024 is looking bright after considerable growth earlier in the year continues under a new captain, but why’s it so good?
The French streaming service Deezer has played catch up for years to the success of streaming competitors like Spotify and Apple Music. Steady growth has multiplied this year following a brand new look, new direction, new royalty systems, and now, even a new CEO.
Alexis Lanternier became CEO of Deezer in September, following Jeronimo Folguiera’s successful time at the top before leaving earlier this year. With Deezer’s Q3 2024 results in, Lanternier seems to be off a good start. Deezer have posted 11% growth for Q3, earning €134 million for the period.
Making up Deezer’s Q3 growth is €85.8 million from direct streaming, €41.5 million from partnerships, and €6.7 million from other sources. The results show clear growth beyond direct streaming, which only grew 4.1%. On the other hand, partnerships revenue increased 21.3% year-on-year and revenue from other sources were boosted an impressive 63.8%.
Deezer is building towards 10 million paying subscribers, however their growth in this area is slow. The results show that Deezer is clearly prioritising growth in other areas than simply direct users. In particular, Deezer notes their work partnering up with festivals in France.
The third quarter of 2024 continues impressive growth from earlier in the year, in which Deezer reported 14.9% year-on-year growth for H1. The growth earlier in the year was largely powered by partnerships, and it’s probably too early to tell whether Deezer’s Q3 growth is a continuation on their successful year rather than their new CEO’s work just yet.
Deezer have outlined an “objective to achieve 10% revenue growth” for the year. Achieving this target will set a good precedent for their new charge, then we will see where the company goes in the next year after what has been a transformative 12 months for the streamer.