DREEZER CASE STUDY
Deezer is a an online music platform that allows users to access an extensive catalogue of songs, albums and playlists. Su business model (+) is based on a subscription form (+), which allows users to access the entire music catalogue without advertising.
Its business model is then explained through the different blocks of the Business Model Canvas.
- Customer segments (+): Deezer targets a broad audience that enjoys music online, with a focus on the music-loving and tech-savvy segments.
- Value proposition (+): Deezer offers access to an extensive catalogue of ad-free, high-quality music, allowing users to listen to and discover new songs, albums and artists.
- Channels (+): Deezer distributes its service through its website and mobile applications, as well as through partnerships with telecommunications service providers and mobile device manufacturers.
- Customer relations: Deezer maintains a relationship with its customers through its customer service, which is available online and by phone. In addition, Deezer focuses on the user experience through its personalised service and music recommendations.
- Sources of income (+): Deezer generates revenue through paid subscriptions as well as advertising.
- Key resources (+): Deezer's key assets are its music catalogue, its streaming technology and its subscription platform.
- Key activities (+): Deezer's key activities are music licensing, music streaming, subscription management and promotion of its service.
- Key partnerships: Deezer partners with telecommunications service providers and mobile device manufacturers to reach new customers and promote its service.
In short, Deezer's business model is based on a subscription approach to accessing an extensive catalogue of ad-free online music, supplemented by advertising. This is achieved through a focus on music streaming technology and personalisation of the user experience, backed by licensing agreements and key partnerships.
We take a closer look at your business model
If you like to listen to music from your devices, you probably know about the service offered by Deezer. Deezer is a streaming music service which offers access to more than 70 million songs internationally. It offers numerous functions such as the possibility to enjoy high quality audio, creation of personalised music playlists, tracking of the lyrics of songs... but there's more: Deezer offers a space for you to upload your own musical creations, a very interesting option for new artists. Despite the fact that there is a lot of competition in terms of music platforms, Deezer has managed to climb up the ranks, becoming one of the users' favourites.
How has Deezer managed to position itself among the most successful music platforms of the moment?
We discover it through its Canvas Model, below.
ORIGIN OF DEEZER
Deezer was founded in 2006 thanks to the idea of two young men, Daniel Marhely and Jonathan Benassaya. The project arose with the aim of creating a digital format to be able to play music for free and internationally.
Its official launch took place in August 2007 and just one year later it already had 7 million lists created. Through its different pricing plans, Deezer offers its customers access to a database with millions of songs from any compatible device, iPhone and Android and even from the web platform itself, which you can access from your computer.
Deezer's business model
Deezer's business model is a Freemium business model. This means that any user can access the use of the application free of charge, i.e: pThey will be able to access the extensive catalogue of songs, podcasts, playlists and radio stations. However, if they want access to more features and benefits, they will have the option to subscribe to a specific plan for a fixed monthly fee..
SOME OF THESE PREMIUN BENEFITS, IN ADDITION TO THOSE THAT THE USER ALREADY ENJOYS WITH THE FREE PLAN, ARE:
- Enjoying music playlists without advertising.
- Choosing the songs you want to reproduce.
- Listen to your lists without the need for a internet connection.
- Listen to your favourite songs in high fidelity sound.
In addition, Deezer offers a 1 month free trial in which users can test all Premium features.
Google's interest in deezer, apple music and amazon music
Deezer Canvas Canvas
VALUE PROPOSAL
DEEZER BASES ITS BUSINESS ON THE FOLLOWING VALUE PROPOSITIONS:
The value proposition on which Deezer's business is based is that of offer a platform where customers can access a large catalogue of music free of charge.You can also create custom lists, and even publish your own creations. (similar to al spotify model). On the other hand, the additional advantage of Deezer is that it enables users to choose between the basic version with full access to the entire music collection without restrictions and advertising.
CUSTOMER SEGMENTS
THE TARGET CUSTOMERS OF THE DEEZER PROPOSITION ARE PRIMARILY THE FOLLOWING:
- Clients who often use their devices to listen to music or podcasts without having to pay for it
- Advertisers
- Artists or creatives who want to upload their creations to the platform to share with other users.
CHANNELS
WHAT CHANNELS DOES DEEZER USE TO REACH ITS CUSTOMERS?
- From Deezer's own websiteusers can create their profile, access the content free of charge or opt for one of the available paid options. They can also create their favourite playlists and enjoy the features available.
- On the other hand, Deezer offers its own application so that customers can download from their iPhone or Android mobile phones as well as on tablets. This makes it possible to take the best music anywhere.
- Deezer is also available for Smart TVSo all you need to do is turn on your TV and download the app to enjoy all the music.
- The social media are another channel where users can get the latest Deezer news and updates, songs, playlists, events and much more.
- Through its advertising campaigns and marketing strategies.
ACTIVITIES
WHAT ARE THE ACTIVITIES CARRIED OUT BY DEEZER?
- Development and maintenance both the Deezer platform and the Deezer application.
- Research for offer new features that improve the user experience.
- Expansion of the catalogue of songs and podcasts.
- Management of the extensive record collection.
- Carry out marketing strategies to ensure good positioning especially in the face of competition.
- Integration with new technologies in Smart TV.
- Carry out partnerships with record companies and broadcasters.
- User database management as well as price plans.
CUSTOMER RELATIONS
HOW DOES DEEZER ENGAGE WITH CUSTOMERS?
- Deezer allows its customers to access one of the most extensive catalogues of musicusers can choose their favourite songs, use the song recognition function, create personalised playlists or listen to the recommendations selected based on each user's tastes.
- Deezer provides its users with a platform where they can upload their own musical creations.. It is therefore a very useful application for new artists who can use Deezer as a launch pad.
- On the other hand, Deezer offers several ways of accessing its service: through its web platform, from a smart TV or mobile phone.even without the need for an active internet connection.
- Deezer Communitythrough this function, users can interact with other users, resolve doubts or seek advice on how to use some functions, among other things (something that the Amazon business model with its music service).
- To facilitate the arrival of new users to the Deezer platform, the company offers a function that allows transfer the library of any other music serviceso that playlists and saved songs are not lost.
- Deezer has a support service for your customersThey will be able to communicate via a web form, the Deezer community or via social media.
- The social media are another way in which the music platform provides information to its customers, makes recommendations and interacts with users.
SOURCE OF INCOME
WHAT ARE DEEZER'S REVENUE SOURCES?
- Deezer's main source of revenue is based on the subscription plan fees paid by users.
Deezer also earns money from the paid service for advertiserswho can place their advertisements for a fee.
RESOURCES
DEEZER HAS THE FOLLOWING RESOURCES TO CARRY OUT ITS CORE BUSINESS:
- The Deezer own brand is one of the company's most valuable resources. Its name has become associated with one of the most successful platforms in music reproduction, which enhances the arrival of new users.
- Deezer has a web platform and a smartphone application which are the engine and foundation of the company. Through both, Deezer offers a complete catalogue of songs, radios and podcasts, as well as a multitude of functions to personalise the experience for its users.
- Another of the resources that makes Deezer a great value in the marketplace is its extensive collection of songs which is expanding with new agreements and the arrival of new artists.
- The user database The Deezer community grows, but it also increases the likelihood that more subscriptions will be taken up (see business model subscription), increasing the company's revenues
- Employees who work to ensure that the company continues to grow and increase its music collection and services: marketing experts, IT managers...
The Deezer softwareThe service allows users to get personalised recommendations based on their searches and preferences, create playlists, use the service offline, track song lyrics and much more.
PARTNERS
WHO ARE THE MAIN PARTNERS OF DEEZER?
- Deezer has created a multitude of partnerships with some of the world's leading record companies The most important music companies, including Sony, Warner Music Group and Universal Music Group, are among them.
- Partnerships with radio stations from all over the world.
- Independent artists and bands who upload their creations to the platform.
- Affiliates.
- Partners enabling Deezer application integration on smart TVs (Smart TV).
- Partners integrating the latest technologies to enable users to enjoy high-quality soundsuch as Sonos Hi-Fi Systems.
- Intelligent audio system partnersGoogle Home, Amazon Echo.
- Last.fm integration with Deezer services: users of both services can import their favourite playlists, songs and albums.
COST STRUCTURE
WHAT ARE THE CONSTES ASSUMED BY DEEZER?
- Payment of royalties for intellectual property rights that are assumed when playing songs on the streaming platform.
- Marketing and advertising campaigns.
- Maintenance and development of the software, web platform and application.
- Wages to workers.
- Development of new functions.
- Legal and administrative fees.
CURIOSITIES OF DEEZER:
- Deezer currently has more than 10 million active users.
- He is considered a innovative business model as well as adapting with AI.
- Deezer is present in around 180 countries.
- Although it originated in France, Deezer is the platform with the highest number of downloads in Latin America.
- Deezer has approximately 6 million Premium subscribers.
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