Warner Owner Invests $130m Into Music Streaming Service

Len Blavatnik's Access Industries, who acquired the Warner Music Group last year, have pumped $130 million into French-based music streaming service Deezer.

The browser-based service, which logs you in via Facebook, claims to have seven million active monthly users around the world and 20 million tracks on offer. It intends to use the investment money to roll out the service further around the world as well as 'updating its products'. The exact plans will be announced in a press conference at London's Abbey Road Studios Wednesday morning local time (7pm Wednesday Australian EST).

Deezer CEO Axel Dauchez said today, “To use a rugby analogy, we've done all the hard yards in the space of a year [since the international launch]; with this $130M investment we are converting the try. We're very pleased to receive this endorsement from an investor of Access' stature. They are knowledgeable and active in the media space and their entrepreneurial spirit is very close to who we are.”

Russian tycoon Blavatnik said of his growing push into music media that, “Access Industries is delighted to have the opportunity to invest in Deezer, a state of the art music subscription service with enormous potential.”

Deezer's global strategy has focused on growing markets rather than focusing into already cluttered zones, such as the United States. In fact their global strategy, announced last year, included all countries expect the US and fellow major market, Japan.

Talking to the Wall Street Journal, Dauchez said that out of the 200 countries they had earmarked, they had launched in 100 of them.

“This investment comes at the right moment to change the scope of ambition,” he said. “We have proved the model. We have proved that in some countries that have never monetized before we are currently generating revenue for the music industry. In terms of volume, the big steps are in front of us.”

The site is available to access from Australia at the moment and given they've struck a deal with an Australian publicist, they are likely to push further into Australia and New Zealand following tomorrow's announcement. That would hopefully mark an increase in their Australian content.

A quick search from theMusic.com.au indicated that five-time ARIA Award nominees The Jezabels' have their three EPs on the service, but not breakout album Prisoner. 360's Falling & Flying is there, however.

Editor's note: Boy & Bear's Moonfire is in the service.