Deezer’s revenues increase in 2024 despite subscribe decline
Strong financial results and strategic innovation push Deezer to profitability while subscribers fall.
Deezer’s strong financial performance in 2024
Despite a drop in subscribers from 10 million in 2023 to 9.7 million in 2024, Deezer delivered an impressive financial performance as it moved closer to profitability. Driven by brand repositioning, partnerships, and solid growth directly in France, Deezer reported a 12% revenue increase to €542 million, exceeding its initial 10% growth target.
Significantly, Deezer broke even for the first time in the second half of the year, with adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) improving from a €28.8 million loss in 2023 to €4 million in 2024.
“2024 was a landmark year for Deezer, marked by progress, innovation, and growth. We achieved full-year revenue growth of 12%, above our financial targets, reached Adjusted EBITDA break-even in the second half and Deezer became free cash flow positive for the first time.”
Alexis Lanternier, CEO of Deezer
What’s behind Deezer’s success?
Deezer’s success was largely brought about by its brand repositioning as it doubled down on its core music experience. Here’s how:
Enhanced product offering
- Gen AI exploration playlists: Enhanced user engagement through AI-driven curation.
- MyDeezer Year 2024: Increased social media shares and platform engagement for Deezer’s end-of-year recap.
Building a sustainable music economy for artists
- AI detection tools: Improved transparency by identifying and labelling AI-generated music while protecting creators’ rights.
- Artistic Centric Payment System (ACPS): Deezer’s ACPS now covers 85% of its recording royalty pool, aiming to ensure fairer payouts to artists.
Expanded partnerships
- Deezer renewed and expanded major partnerships, securing its position in key markets.
Looking ahead
Deezer is now focusing on the next wave of streaming innovation- “Streaming 2.0”. By leveraging the disruptive trends and new opportunities Streaming 2.0 brings, Deezer aims to improve its music experience across markets to create new revenue streams. Its roadmap for 2025 includes:
- A more social and personalized music experience, tailored towards the younger generation.
- Harnessing the largely untapped superfan market.
- Empowering artists to build connections with fans, while ensuring fair remuneration.
- Offering better solutions for partners, allowing brands to differentiate themselves.
By staying ahead of industry shifts and prioritizing innovation, Deezer hopes to continue empowering fans, artists, and partners. One thing is for sure, Deezer’s 2024 success has set a solid foundation for improved revenue and profitability in the coming year.
