France-based music streaming service Deezer reported revenue growth of 11% in the third quarter of 2024, although the company’s paid user base was unchanged from the numbers reported a year ago.
The company’s latest earnings report came a day after announcing it had signed up. Ed Newton-RexThe announcement about artificial intelligence training makes it the first music streaming service to support documents signed by nearly 30,000 people, mostly creators.
Deizer reports 9.9 million Number of paid subscribers for the quarter ended September 30. However, the company removed nearly 400,000 inactive household subscriptions from its count, which reduced the number of subscribers to 9.5 million in the same period last year. Current number of subscribers represents 4.1% compared with the same period last year grow from that level.
Deezer notes that removing inactive accounts doesn’t impact revenue, but it does improve profit margins to some extent.
The company reported 5.2 million direct subscribers, drop Annual increase of 1.4%and 4.7 million Number of users subscribed through partners, max. Annual increase of 11.0%.
Deezer recently signed new partnership with French ad-supported video streaming service TF1+Sports streaming services Dazninand smart TV platform titan operating systemwait.
Deezer direct subscriber growth in key French market Annual growth of 3.2% arrive 3.4 millionwhile direct subscriptions declined in the rest of the world 9.2% arrive 1.8 million.
The company’s consolidated revenue reached €134.0 million ($147.3 million Calculated based on the average exchange rate in the third quarter), Annual increase of 11.0% increase, or Annual increase of 13.0% Calculated at a fixed exchange rate.
Deezer said revenue growth was driven by new partnerships and recent subscription price increases.
Partnership revenue surges Annual increase of 21.3% (or 26.7% Calculated at a fixed exchange rate) 41.5 million won ($45.6 million), driven by continued strengthening of partnerships with Latin American e-commerce giants free marketas well as the German Broadcasting Corporation RTL. The sector was somewhat negatively impacted by the weakening of Latin American currencies against the euro.
Direct subscription revenue increases 4.1% compared with the same period last year (or 4.7% Calculated at a fixed exchange rate) 85.8 million won ($94.3 million), which Deezer attributed to a 3.2% increase in direct subscribers in France, its main market, along with price increases and a reduced use of trials and promotions to drive new subscriptions.
The company expects to achieve its 10% revenue growth target for the full year and said its EBITDA is expected to be negative:10 million yuansignificantly improved -$29 million 2023.
“I’m proud of the team’s accomplishments in delivering another quarter of double-digit growth in the third quarter of 2024,” CEO said. Alexis Lanternier said in a statement to investors.
Lanternier took over Deezer on September 2, succeeding Geronimo FolgueiraAdding that Deezer “continues to deliver value and innovation across the music ecosystem, I look forward to continuing to leverage Deezer’s unparalleled strength in enriching the lives of fans through music experiences and working with strategic partners to expand the reach of music lovers.”
Deezer signs statement on artificial intelligence training
A day before the earnings release, Deezer announced that it had become the first music streaming service to sign an AI training statement, which stated: “The unauthorized use of creative works to train generative artificial intelligence poses a significant and unfair threat to the livelihoods of the people behind these works and must not be allowed.
“The work of artists and songwriters is the foundation of the music industry, and it is vital to Deezer that we pay creators fairly and protect their work from any misuse,” Lanternier said.
“We are proud to be among the tens of thousands of creators and organizations who are fighting against the unlicensed use of artificial intelligence in creative works. We will continue to do our part to protect the rights of artists and songwriters, including developing our string New models for streaming rewards, artificial intelligence detection and combating fraud.
deese has taken Take proactive steps to combat streaming fraud and the proliferation of low-quality content on streaming platforms. For example, it has been removed 26 million ‘Useless’ tracks in its music library since launching artist-focused payment system last year Cooperate with universal music group.
“The work of artists and songwriters is the foundation of the music industry and it is important to Deezer that creators are paid fairly and their work is protected from any misuse.”
Alexis Lanternier, Dize
AI announcement organized by former audio executive Ed Newton-Rex Stable artificial intelligence and founder of the non-profit licensing organization well trainedcomes as the music industry pushes to prevent the unauthorized use of copyrighted music to train artificial intelligence music generators.
Record companies owned by the three major music companies— Sony Music Group, universal music groupand Warner Music Group – Recently sued artificial intelligence music platform sun and share The platforms are accused of using copyrighted music to train their artificial intelligence.
In accordance with the EU’s recently passed Artificial Intelligence Act, Sony Music and Warner Music sent letters to artificial intelligence companies informing them to “opt out” of having their music used for artificial intelligence training unless they give special permission.
Deezer said it is developing an AI detection tool and plans to launch the first generation “AI detector” before the end of 2024.global music business
