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IFPI Digital Music Report 2010

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Replacing Piracy<br />

With Partnership<br />

Jonathan Benassaya, CEO of Deezer<br />

13<br />

In Profile: Pioneers Of <strong>Digital</strong> <strong>Music</strong><br />

Deezer is a France-based ad-supported music<br />

streaming service. It has made the migration from<br />

being unlicensed and illegal to being a valued<br />

partner to the music industry. “In the US, start-ups<br />

usually begin in a garage; in Paris my partner started<br />

out in the music business in my kitchen – launching<br />

a website called blogmusik.net” says Jonathan<br />

Benassaya. “He soon received letters from bodies<br />

representing rights holders saying the service was<br />

illegal and must be shut<br />

down. He did that and then I sat down with him and the<br />

rights holders to see if we could work out a way forward.”<br />

The result was Deezer, a licensed and legal website that<br />

users can access anywhere using a browser. The service<br />

offers on demand music streaming, web radio and a smart<br />

radio tool similar to Last.fm or Pandora. Once users have<br />

listened to their own playlist a number of times they tend to<br />

switch to web radio to find out about new hits or the smart<br />

radio tool to discover new tracks. Deezer also offers a free<br />

mobile application for its web radio service. For the ondemand<br />

portable feature users pay €9.99 per month.<br />

The company has gone from three people in August 2007<br />

to 45 people to date. “Our focus is on profitability instead<br />

of international expansion. That’s why we’ve done a huge<br />

job in France trying to optimise everything - from the<br />

music rights to the cost structure. We’ve grown from<br />

100,000 unique visitors to 16 million across Europe,<br />

including almost 12 million in France.” n

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