Various sources today report French streaming music service Deezer has raised $130 million in a funding round led by Warner Music Group owner Access Industries.
Deezer had been planning to make the announcement Wednesday, but confirmed the deal after the story broke in the French media this past weekend. Deezer Deputy GM, Head of Ad Sales David Deslandes spoke on the "Monetizing Digital Audio" panel at RAIN Summit Europe on Friday in Berlin.
Deezer says it intends to use some of the new money to extend its geographical reach and update the product updates; $30 million of that will reportedly go to buy out current shareholders. The company promises full details will be revealed on Wednesday.
According to MusicWeek.com, "Deezer has been profitable since 2010 with a number of partnerships including Facebook and local telecommunications companies such as Orange in the UK." CEO Axel Dauchez confirmed to The Wall Street Journal that the company was profitable, "but due to expansion plans was now entering an investment phase. 'We will return to profit in 2014.'"
Deezer currently has 26 million users, of which some 1.5 million have a paid-for subscription. In December Dauchez announced his global strategy to offer a service in every country except Japan and the U.S.
The Journal reports, "Digital channels now account for an estimated 32% of record-company revenues globally, up from 29% in 2010. Some markets now see more than half of their revenues derive from digital channels, including the U.S. (52%), South Korea (53%) and China (71%)."