Deezer is casting a wider net by avoiding the crowded US market
Deezer's strategy of not focusing on the US and instead focusing on the rest of the world, the entire rest of the world, seems to be paying off.The company has announced that it's now got four million paying subscribers around the world, up from three million at the end of 2012. That's a significant number, though it's still far from Spotify's six million.
Spotify is getting most of the attention in the media, for the sole reason that Deezer isn't available in the US but, globally, Deezer is the bigger player, if only by the number of countries it's available in.
While Spotify is still the king of on-demand music streaming, Deezer is growing fast and positioning itself as the biggest contender to the crown.
The downside of Deezer's strategy is that those four million subscribers are scattered in hundreds of countries, meaning a lot of overhead for the company.
Meanwhile, Spotify is focusing on a few but richer markets in the US and Europe. The downside in this case is that content costs more to license here.