Market Insight

Deezer to offer HiFi Streaming on Sonos Globally

February 10, 2015  | Subscribers Only

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Deezer to offer High Quality Streaming on Sonos Globally Deezer, music on-demand service, and Sonos, wireless music system manufacturer, announced that it will be offering Deezer Elite on Sonos products outside the US. Deezer, partnered with Sonos, launched in the US in the fall of 2014. The rollout includes two phases:

  • The companies will allow Deezer listeners on Sonos to upgrade to Deezer Elite at no additional cost.
  • Starting March 19th, Deezer Elite will be accessible to all users across more than 150 countries

Sonos users in Europe, Latin America, Asia Pacific, and Canada will now be able to access Deezer Elite on their systems. Deezer has a library of about 35 million songs and streams lossless FLAC (free Lossless Audio Codec) files at a rate of 1,411 kbps or higher. With Sonos speaker systems, users will be able to access Deezer’s library in any room or in multiple rooms.

Since entering the US in September 2014, Deezer has seen over 200,000 new users.

Our analysis

While Deezer has a large global presence, it had not been available in the US until late 2014. With its US launch Deezer chose to partner with Sonos meaning only a limited number of people in the US would have access to Deezer’s service.  The company then expanded its US offer with a partnership with Bose in October 2014; and announced its acquisition of Cricket’s Muve Music in January 2015. In comparison, Spotify is available in over 59 countries and launched in the US in July 2011 with no official partners.

Deezer and Spotify have followed different launch strategies, but both companies have seen relative success in terms of paid and active users. Spotify announced in December 2014 that it had 15 million paid and 60 million active users. Deezer also announced in December 2014 that it has 6 million paid and 16 million active users. While Spotify does have a larger number of paid and active users, Deezer has managed to sustain a higher conversion rate from free to paid with 37.5% as of December 2014. In October 2014, Deezer had 5 million paid users and 16 million active users meaning that its conversion rate grew 6% from 31% in October to 37% in December 2014.  In comparison, Spotify has maintained a stable conversion rate of 25% since December 2012.  Although these conversion rates vary conversion rates vary considerably from country to country.

Deezer Spotify
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