Music subscription service Deezer has confirmed a new investment from Warner Music owner Access Industries totalling $130 million (approximately £80m).
The investments makes Access Industries “a cornerstone investor in the company” according to Deezer.
The streaming music service intends to use the new funds for further geographical roll out and product updates, with full details set to be revealed on Wednesday.
“One year ago, we launched Deezer worldwide. We now operate across every continent and have 2 million paid subscribers,” said Deezer CEO Axel Dauchez.
“To use a rugby analogy, we’ve done all the hard yards in the space of a year; 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. With such a partner, our proven growth and our track record in profitability, Deezer is on the right track to becoming the leading digital music service worldwide and representing 5% of the music market by 2016.”
Chairman and founder of Access Industries, Len Blavatnik, added: “Access Industries is delighted to have the opportunity to invest in Deezer, a state of the art music subscription service with enormous potential.”
Deezer has been profitable since 2010 with a number of partnerships including Facebook and local telecommunications companies such as Orange in the UK.
“We don’t believe in gambling on the future of music,” Dauchez added. “Both the recovery and the future growth of the music business require companies like Deezer to develop profitable, long-term business models that deliver for all industry players - from authors and artists to digital distributors.
“Specifically, the industry needs pure player distributors to ensure its future independence. Hence, we have always prioritised a sustainable approach within the race to take digital music global. This is a key reason why Access Industries has chosen to invest in Deezer."