DNA and Deezer on the way to break 'The Finnish Paradox'

    Editor’s Note: This is a sponsored post for DNA Engine written by Mathieu Molinero, Head of New Markets at Deezer.

    The music streaming revolution has started 5 years ago and keeps growing years after years, bringing growth once again to the music industry (+44% in volume and + 59% in total value in 2012). This revolution is at the expense of physical sales with the appearance of new technologies and new devices like smartphones and now tablets. Music streaming is also a new way of consumption that totally corresponds to our modern society : access to millions of songs, anytime, anywhere, on any device for the price of 8 tracks on legal downloading platforms (9,99€).

    Music streaming also helps reducing illegal downloading because pirates can now have access  immediately to more than 30 million tracks for a very affordable price. In Finland, piracy has for example dropped to low world record of 9%.

    In the most advanced markets like Sweden, digital music now represents 71% of music sales (of which 90% is streaming) and physical sales have dropped to a low 29% market share.

    It took a bit more time for Finnish music fans to adopt music streaming compared to other Nordic countries while being a tech-savvy country where over 80% of all sold phones are smartphones and the existing smartphone penetration is already over 60%. This is what we often call the Finnish Paradox.

    But the paradox is about to be broken in the next few months.  The streaming revolution is definitely blooming in the country of the thousands lakes: in 2013, streaming increased by 41% in one year while CD sales dropped by 13% and downloading by 10% in 2013.

    I feel that 2014 will be the year of music streaming in Finland because the potential is so huge and the market still very open : physical sales still represent 64% while digital now represents 36% of sales (of which 81% streaming). In 2014, I feel digital sales will be over 50%, mostly driven by streaming services like Deezer or competitors.

    Deezer is a broad and exciting global music subscription service created in France in 2005. Biggest service in France, Deezer then entered the UK, Germany and Benelux  in 2010.

    In November 2012, we were able to raise 130 million $ from US-based venture Access Industries to open in more than 182 countries, becoming the only true global music streaming service.

    Deezer has today 35 million users, 5 million of whom are paying subscribers in 182 countries.

    It lets fans enjoy music like never before with access to more than 30 million tracks, instantly available on any device – desktop, smartphone, laptop, tablet, wireless home speakers, in-car audio, smart TVs and Xbox.We differ from competing music services for instance by employing more than 50 music editors around the world. Users will receive music recommendations through Deezer, based on selections made by these expert editors. In Finland, interesting tunes will be added to Deezer’s music list by Editorial Manager Jouni Pesola, the music editor for Finland and the Baltic countries.

    Nadine in Australia, Tecla in South Africa, Nantarika in Thailand or Yasmine in Brazil for example have the same mission to entertain music fans from all over the world.

    Telco partnerships are a great way for us to launch in a country, so it’s always something we’re keen to explore, especially if there’s a suitable partner with the same desire to share music with its customers. We won’t partner with anyone – where we can’t align with the right partner, we launch as a standalone service.

    We see a genuine global opportunity for mobile carriers to become the new music distribution network.  They’re able to reach people and places that traditional, physical distribution never went near.  As music moves online and it becomes more about usage than ownership, listening to music will no longer be confined to a country or restricted by borders.  We’re encouraging a reorganisation of cultural expression worldwide, and mobile carriers can lead this revolution.

    We have 35 Teclo partners today and we are very happy to launch an original offer in Finland in cooperation with DNA. We are both challenging bigger players and therefore we need to be constantly more innovative and reactive. DNA was definitely the best fit for us.

    DNA will offer the Deezer Premium+ service at half price for six months for the subscribers of its Äly, Veppi and Rajaton plans. These users will pay only EUR 4.99/month (regular price EUR 9.99/month) for the first six months of the service.

    And this is just the beggining : DNA customers can expect constant innovation and entertainment from both DNA and Deezer.

    Bileet käyntiin, Suomi!

    Mathieu MOLINERO, Head of New Markets @Deezer

    About DNA Engine

    DNA Engine is a blog driven by innovations, startups and DNA’s continuous search for leading-edge partnerships. They enjoy seeing companies which are continuously coming up with new innovative products and services that shape their way of using technology. They blog about their own insights on mobile handset ecosystems, innovation-driving companies and ICT phenomena, but also invite interesting guest bloggers to share their views.