It looks like the online subscription music business is booming.The latest news is that Paris-based (and global presence) Deezer has 2 million paying subscribers. Assuming all the subscribers have chosen the monthly subscription price of £4.99 a month, Deezer is set to earn £119 million in profits this year.Yet, the site is still getting venture capital funding, most recently $130 million from Access Industries (owned by Warner Music Group), and operating on a loss. CEO Axel Dauchez told the Wall Street Journal that the site is aiming to be profitable by 2014.But overall, this is good news for subscription music sites. Digital music now accounts for approximately 32% of record company revenues, according to the Wall Street Journal, up from 29% in 2010. The US sees 52% of revenues from digital channels, but unlike other paid content niches, the growth isn’t limited to this side of the globe; Norway and Sweden are the first and second most-active streaming markets globally, and South Korea and China get 53% and 71% of their revenues from digital channels, respectively.
Music Streaming Subscription Site Deezer Has 2 Million Paying Subscribers
It looks like the online subscription music business is booming. The latest news is that Paris-based (and global presence) Deezer has 2 million paying