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Hi! I’m Alex 
DEEZER PRESENTATION 
Alex Esser 
18th Annual Nordic & Baltic Telecoms Executive Forum 
September 2014
2 
Contents 
1/ Deezer Introduction 
2/ Market Overview 
3/ Product & Content Strategy 
4/ Growth Strategy with B2B Partners: Telecom Carriers & Manufacturers
Introduction
Soft 
bundle 
Deezer in two sentences 
Global Streaming Service 
Award winning 
recommendation engine
5 
Deezer Product
Deezer Users Show Strong Engagement and Satisfaction 
6 
Hear this: Algorithms + Human Recommendation
7 
Deezer Product
Soft 
bundle 
182 
countries 
6.5M 
subs 
35M+ 
tracks 
16M 
monthly active users 
Deezer in figures
Product 
Geography 
Fund-raising 
(1) 
Corporate 
9 
Deezer Timeline: Key Milestones 
2007 2008 2009 2010 2011 2012 2013 2014 
Free service 
on web 
Pay 
services 
launched 
Bundled offers 
launched 
France market 
launch 
Free service 
on mobile 
“Flow” launched 
2006 
Ad sales 
launched 
integration 
2015 
US 
launch 
UK 
launch 
Belgium 
launch 
Ger. 
launch 
Rest of 
Europe 
launch 
Brazil 
launch 
Rest of 
world 
launch 
$[7]m $[12]m $93m(1) 
Targeted market 
growth 
Global expansion 
Build business 
model 
Develop main features and 
grow catalogue 
Sign key 
partnerships 
Daniel Marhely 
founds Deezer 
Christopher 
Coonen 
(COO) joins 
Simon 
Baldeyrou joins 
as CPO & CFO 
Axel Dauchez 
appointed new 
CEO 
New organisation 
for global 
expansion: 
opening of 15 
offices) 
Axel Dauchez 
leaves the 
company 
Didier Bench 
appointed 
Chairman of 
the Board 
Tyler Goldman 
(US CEO) 
joins 
(1)of which $30m were used to pay non-recouped MGs of the 2013-2014 period
Deezer Product Offering: A “Freemium” Model 
• Limited web streaming 
• Mobile streaming in radio formats 
• Advertising 
• No offline access 
• Recommendations and curation 
• 128 kbps sound quality 
10 
Standard Offerings 
Discovery Premium + 
Free £/€/$ 9.99 per month 
• Unlimited web and mobile streaming 
• No advertising 
• Offline access 
• Recommendations and curation 
• Up to 320 kbps sound quality 
New Offerings 
[Elite] 
Mid-Tier 
Offering 
£/€/$ 19.99 
per month 
• Premium + features 
• On-demand music 
concierge 
• 24/7 customer service 
• Flac 16 bits sound 
quality (CD quality) 
£/€/$ 4.99 
per month 
• Features TBD 
Launched Sept 
2014 
Family Offer 
£/€/$ 9.99 - 19.99 
per month
Market Overview
The Deezer Ecosystem: Creating a Service Around Music Content 
12 
Talent 
Artists 
Composers 
Songwriters 
Record labels 
& publishers 
Majors 
Independents 
(International & 
Local) 
Music 
Publishers 
Collecting 
Societies 
Telco Partners 
(Indirect) 
End users 
Other Partners 
(Direct)
Opening Japan 
2014 Opening 2015 
13 
Deezer Has a Truly Global Presence 
Deezer footprint 
US 
Service available 
Deezer in-market presence 
Deezer local editors 
182 countries 
27.languages 
30 payment methods 
17 offices 
300+ employees 
50 local editors
Streaming is Becoming the Consumption Channel of Choice for Music 
14 
Recorded Music Revenue by Format ($bn) 
Source: PWC, ABI, RIAA 
(1) ABI Research; includes paying subscriber revenues only; excludes ad-based revenues and radio format-only services like Pandora 
(1)
Market Potential: Scandinavia Leading The Way... RoW To Follow 
15 
Paying Subscriber Penetration (%) 
SE & NO still growing!!! 
26% 
24% 
3% 
3% 
2% 2% 
1% 1% 
30% 
23% 
15% 
8% 
0% 
Norway Sweden France UK Spain US Germany Italy 
Source: ABI, EMI Insight 
8x – 20x upside to reach Norway & Sweden levels 
Huge growth still ahead in DK & FI
Streaming is Already Replacing Downloads in More Mature Markets 
16 
(1) 
U.S. Digital Music Revenues by Type ($bn) 
2.58 2.63 
2.85 2.82 
2.45 
0.21 
0.36 
0.57 
0.85 
1.20 
2010 2011 2012 2013 2014E 
Digital Music Downloading Digital Music Streaming 
Source: PwC, Nielsen, RIAA; Streaming figures represent subscription and ad-based on-demand music streaming evenues, and excludes radio formats like Pandora 
(1)Annualized figures based on H1 2014 digital units sold and tracks streamed growth rates 
• Digital downloads down - 
13% in H1 2014 
• Streaming up +42% in H1 
2014
Market Potential: Scandinavia Leading The Way... RoW To Follow 
17 
DEEZER is a credible alternative to Spotify in the Nordics 
Source: ABI, EMI Insight
Market Potential: Scandinavia Leading The Way... RoW To Follow 
18 
Paying Subscriber Penetration Sweden + Denmark 2014 
100% 
302% 
750% 
100% 
127% 
192% 
800% 
600% 
400% 
200% 
0% 
Sweden Q1 Sweden Q2 Sweden Q3 Denmark Q1 Denmark Q2 Denmark Q3 
Source: ABI, EMI Insight
Product Content & Strategy
Deezer Users Show Strong Engagement and Satisfaction 
510 
47 
54% 
Source: Deezer, June 2014. 
Note: Only streams lasting more than 30 seconds are accounted as streams 
(1) Active users are people who listened to at least one stream (more than 30 seconds). DAU = daily active user, MAU = monthly active user. 
20 
Streams per 
direct Premium+ 
subscriber 
per month 
Deezer NPS 
score among 
users 
DAUs / MAUs(1) 
per direct 
Premium+ 
subscriber 
>70% 
share of streams 
on mobile devices 
for Premium+ 
subscribers
Deezer Users Show Strong Engagement and Satisfaction 
21 
Hear this: Algorithms + Human Recommendation
Deezer Users Show Strong Engagement and Satisfaction 
22 
Flow: a New Way to Discover Music
Deezer Users Show Strong Engagement and Satisfaction 
Flow: a New Way to Discover Music Flow a Step Up in User Satisfaction 
Share of Tracks Not Skipped When Listening Through 
Various Radio Formats 
84% 83% 
74% 
Playlist radio Flow Radio 
(non-discovery) (discovery) (discovery) 
Flow now accounts for 8% of global 
streams on Deezer
Deezer Has the Largest Catalogue Among Streaming Services 
24 
• Deezer develops extensive depth and breadth in all genres 
and all countries in order to: 
• Satisfy all local tastes 
• Satisfy all music genre communities 
• Give emerging artists an opportunity to be heard 
everywhere 
• Virtuous cycle where content providers want to work with 
us due to the global exposure we can provide 
30m 
25m 
20m 
15m 
The Deezer Catalogue Strategy Deezer Catalogue Ranks No. 1 
35m 
1m 
Deezer Local Content 
India Brazil 
Thailand Africa 
Country 
South Korea 
Japan 
Brazil 
Italy 
Sweden 
France 
Denmark 
Netherlands 
Germany 
% 
100% 
100% 
90% 
90% 
95% 
80% 
80% 
80% 
70% 
Deezer Local Labels Examples 
% of Top 10 Albums by 
Local Artists
Bragging rights: Deezer Has a State-of-the-Art Product 
“Deezer is willing to take a risk when it comes to discovery” 
“As for now, I have been more impressed with Deezer’s integration 
into 3rd party apps – eDJing, Soundrop, Seevl, and others” 
“I was convinced to switch to Deezer and I’ll be wrapping up my Spotify 
account” 
25 
Deezer vs. Spotify : a side-by-side comparison 
Rude Baguette. December 2, 2013 
“We like Deezer's light, clear and simple 
design across both the web/desktop versions of the 
service and the mobile/tablet versions, and think it's 
easier to navigate than the dark, quite complex 
interface of Spotify” 
“Deezer has a cool feature called Hear This (…), a 
music feed that's personalised for you (…) We prefer 
Here This to Spotify's 'Discover' feature” 
Deezer vs Spotify comparison: what is the best music streaming 
service? 
Tech Advisor. June 09, 2014 
“The big difference between the two (Deezer and Spotify) is the 
team Deezer has, they know about music” 
Melomanos a la Obra 
El Universal (Mexico’s largest newspaper). August 14, 2014 
“Deezer arguably has the strongest editorial personality 
of any of these services” 
“Deezer often includes a little comment from the Deezer staff 
member who is making these recommendations, and includes 
their name, job title, and picture, giving it a strong human 
touch” 
Best Streaming service: which one to download? 
Trusted reviews, August 14, 2014 
“The Swedish population is clearly enjoying the unique 
recommendation engine and Deezer’s approach to ensuring content is 
localised” 
“Deezer proudly topped the podium with nine out of ten points. Natives 
Spotify took second place while Norwegian Wimp came in third position” 
Deezer beats spotify 
M3 sveriges prylsajt. July 7, 2014
Innovative Partner Approach
Deezer Has An Adaptable and Scalable Platform… 
Adapted to each country Adapted to each partner Adapted to each user 
• Customizable technical integration 
for a turnkey solution 
• Joint development of UX and co-branding 
• Ability to launch 90 days after 
signing 
• 4 years of experience in the making 
27 
• Local user interface: language, 
currency, payment methods 
• Local content: tracks, genres, 
editorial recommendations, 
marketing offers 
• Groundwork laid over past 
3 years for populations now 
beginning to stream 
• World-class, in-house developed 
recommendation algorithm 
• Flow: personalized one-click radio 
playback 
• TO COME: seamless active and 
passive experience 
• TO COME: super-serve selected 
customer segments 
The adaptability of our platform allows us to be nimble and scalable
Deezer Has An Adaptable and Scalable Platform… 
Adapted to each partner 
Music Branding? 
Social Media engagement? 
Decrease churn? 
ARPU upsell? 
Reach new customer segments? 
The adaptability of our platform allows us to be nimble and scalable 
28
29 
Deezer Tre
30 
Deezer Tre
31 
Deezer Tre 
Fly your customer to Paris to see Pharrell Williams live
Deezer Global Subscriber Acquisition Strategy 
32 
Partners / 
Vendors 
Bundled 
• Partners promote Deezer 
through targeted channels 
• Customer benefit s from a 
A 
Definition promotional period 
Direct 
(subscribers billed by Deezer) 
Standalone 
B2B2C 
partnerships 
Paid traffic 
acquisition 
• Users coming at zero 
cost 
• Long-term result of all 
other initiatives 
including brand 
awareness 
Indirect 
(subscribers billed by telco operators) 
Organic 
• Deezer is included in the 
customer mobile 
contract 
• No price transparency 
• Carriers promote Deezer 
unbundled to their 
installed base 
• Customer benefits from a 
promotional period 
B C D 
• Acquisition through 
traditional networks and 
affiliation tools 
NA
33 
Deezer Tre
36 Indirect Carrier Deals Globally….and more to come soon! 
34 
Western Europe 
Country Telco Partner 
Type 
Latin America 
Country Telco Partner Type 
Other 
Country Telco Partner Type 
A 
Note: HB: Hardbundle; SA: Standalone; As at June 2014. 
Others
A Win-Win Proposition for Both Deezer and Carriers 
Benefits to Deezer Benefits to carriers 
 Quickly reach mass market in any country 
 Marketing support 
 Long-term revenue visibility (hard-bundle) 
 Lower churn due to carrier billing (standalone) 
 Partners guarantee minimum volumes 
 Brand image improvement 
• Music positioning 
• Artist marketing activities & endorsement 
 Customer acquisition 
• Unlimited music proposal 
• Exclusive partnerships 
 Customer retention 
• Churn and migration drop thanks to Deezer stickiness 
 ARPU enhancement 
• Upgrades: higher tariff plans 
• Upsell: data add-ons or revenue share on standalone 
offers 
75% 17% as much as 
70% 
35 
60% 
10% 
>€500k media spend 
+ sales incentives, in-store mktg 
Churn 
Reduction: 
ARPU Uplift: 
A 
Churn 
Reduction: 
Marketing Spend 
Commitments:
Zoom on Orange partnership [2010; 2018 renewal] 
Hard 
bundle 
Deezer is bundled in selected Orange plans for the whole 
time of the contract at no additional cost for the customer 
7 
Orange countries 
Offering Deezer bundled with 
- 60% 
in churn and migration 
Deezer active users 
vs. non active users* 
their plans 
51 
Deezer with Orange NPS* 
(vs. 50 for Deezer direct) 
2010 
2011 
2012 
2013 
Orange France V1 (Incl. 
investment from Orange & 
WorMee acquisition) 
Orange UK (EE) 
Orange Poland 
Orange Romania 
Orange France V2 
(Deal renewal, extension of 
Deezer bundle to all plans) 
Orange Senegal 
Orange Ivory Coast 
Orange Mauritius 
2014 Orange France V3 
Orange Spain 
Orange North Africa 
Source: Orange France figures *Deezer survey on Orange France customers 
A
T-Mobile partnership overview [2010; 2016 renewal] 
6 
T-Mobile countries 
Offering Deezer bundled 
- 75% 
in churn and migration 
Deezer active users 
vs. non active users 
with their plans 
2012 
2013 
2014 
T-Mobile Austria 
T-Mobile Netherlands 
T-Mobile Croatia 
[T-Hrvatski Telekom] 
T-Mobile Czech Republic 
T-Mobile Albania [AMC] 
T-Mobile Slovakia 
+10% 
ARPU 
Deezer active users 
vs. non active users 
Source: T-Mobile Netherland 2013 figures 
Hard 
bundle 
Deezer is bundled in selected T mobile plans for the 
whole time of the contract at no additional cost for the 
customer 
A
Tigo partnership overview [2013; 2014 renewal] 
Hard 
bundle 
Deezer is bundled in customer’s potpaid plans and 
prepaid daily, weekly or monthly offers 
6 
Tigo countries 
Offering Deezer bundled 
with their plans 
2013 
2014 
Tigo Bolivia 
Tigo Colombia 
Tigo Guatemala 
Tigo Honduras 
Tigo Paraguay 
Tigo Salvador 
First tests on prepaid 
offers 
Tigo Prepaid offers 
launched in all Tigo 
countries 
43% 
Acquisition impact 
% of Tigo-Deezer users declaring 
Deezer as the main reason for 
choosing this Tigo plan 
17% 
Anti-churn impact 
% of Tigo-Deezer users who would 
leave Tigo if the Deezer bundle was 
over 
Source: 2014 Deezer survey on Tigo-Deezer Colombia customers 
A
39 
Direct B2B2C Partnerships 
B 
Large-scale Partnerships Launched from Early 2014 Opportunity to Expand into Other Partnership Models 
We have partnered with 
400+ 
brands 
Cars 
Banks 
Travel 
Food 
Ticketing 
Media 
Loyalty 
programs 
22 countries 
>30,000 new subscribers in 4 months 
12 countries 
Estimated >1m units to be sold in 12 months with 
Deezer promotional offer 
More than 100 countries 
Estimated >10m units to be sold in 12 months with 
Deezer promotional offer 
A 
B 
C 
Many of which 
are 
partnerships 
that can be 
replicated on a 
larger scale
Soft 
bundle 
Deezer in two sentences 
Global Streaming Service 
Award winning 
recommendation engine
Soft 
bundle Everyone is unique 
Adapt the service to: 
Every user 
Every partner 
Every country 
Market Philosophy:
Thank You! 
aes@deezer.com 
18th Annual Nordic & Baltic Telecoms Executive Forum 
September 2014

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Deezer Insights - Nordic Telco Summit presentation September 23rd 2014

  • 1. Hi! I’m Alex DEEZER PRESENTATION Alex Esser 18th Annual Nordic & Baltic Telecoms Executive Forum September 2014
  • 2. 2 Contents 1/ Deezer Introduction 2/ Market Overview 3/ Product & Content Strategy 4/ Growth Strategy with B2B Partners: Telecom Carriers & Manufacturers
  • 4. Soft bundle Deezer in two sentences Global Streaming Service Award winning recommendation engine
  • 6. Deezer Users Show Strong Engagement and Satisfaction 6 Hear this: Algorithms + Human Recommendation
  • 8. Soft bundle 182 countries 6.5M subs 35M+ tracks 16M monthly active users Deezer in figures
  • 9. Product Geography Fund-raising (1) Corporate 9 Deezer Timeline: Key Milestones 2007 2008 2009 2010 2011 2012 2013 2014 Free service on web Pay services launched Bundled offers launched France market launch Free service on mobile “Flow” launched 2006 Ad sales launched integration 2015 US launch UK launch Belgium launch Ger. launch Rest of Europe launch Brazil launch Rest of world launch $[7]m $[12]m $93m(1) Targeted market growth Global expansion Build business model Develop main features and grow catalogue Sign key partnerships Daniel Marhely founds Deezer Christopher Coonen (COO) joins Simon Baldeyrou joins as CPO & CFO Axel Dauchez appointed new CEO New organisation for global expansion: opening of 15 offices) Axel Dauchez leaves the company Didier Bench appointed Chairman of the Board Tyler Goldman (US CEO) joins (1)of which $30m were used to pay non-recouped MGs of the 2013-2014 period
  • 10. Deezer Product Offering: A “Freemium” Model • Limited web streaming • Mobile streaming in radio formats • Advertising • No offline access • Recommendations and curation • 128 kbps sound quality 10 Standard Offerings Discovery Premium + Free £/€/$ 9.99 per month • Unlimited web and mobile streaming • No advertising • Offline access • Recommendations and curation • Up to 320 kbps sound quality New Offerings [Elite] Mid-Tier Offering £/€/$ 19.99 per month • Premium + features • On-demand music concierge • 24/7 customer service • Flac 16 bits sound quality (CD quality) £/€/$ 4.99 per month • Features TBD Launched Sept 2014 Family Offer £/€/$ 9.99 - 19.99 per month
  • 12. The Deezer Ecosystem: Creating a Service Around Music Content 12 Talent Artists Composers Songwriters Record labels & publishers Majors Independents (International & Local) Music Publishers Collecting Societies Telco Partners (Indirect) End users Other Partners (Direct)
  • 13. Opening Japan 2014 Opening 2015 13 Deezer Has a Truly Global Presence Deezer footprint US Service available Deezer in-market presence Deezer local editors 182 countries 27.languages 30 payment methods 17 offices 300+ employees 50 local editors
  • 14. Streaming is Becoming the Consumption Channel of Choice for Music 14 Recorded Music Revenue by Format ($bn) Source: PWC, ABI, RIAA (1) ABI Research; includes paying subscriber revenues only; excludes ad-based revenues and radio format-only services like Pandora (1)
  • 15. Market Potential: Scandinavia Leading The Way... RoW To Follow 15 Paying Subscriber Penetration (%) SE & NO still growing!!! 26% 24% 3% 3% 2% 2% 1% 1% 30% 23% 15% 8% 0% Norway Sweden France UK Spain US Germany Italy Source: ABI, EMI Insight 8x – 20x upside to reach Norway & Sweden levels Huge growth still ahead in DK & FI
  • 16. Streaming is Already Replacing Downloads in More Mature Markets 16 (1) U.S. Digital Music Revenues by Type ($bn) 2.58 2.63 2.85 2.82 2.45 0.21 0.36 0.57 0.85 1.20 2010 2011 2012 2013 2014E Digital Music Downloading Digital Music Streaming Source: PwC, Nielsen, RIAA; Streaming figures represent subscription and ad-based on-demand music streaming evenues, and excludes radio formats like Pandora (1)Annualized figures based on H1 2014 digital units sold and tracks streamed growth rates • Digital downloads down - 13% in H1 2014 • Streaming up +42% in H1 2014
  • 17. Market Potential: Scandinavia Leading The Way... RoW To Follow 17 DEEZER is a credible alternative to Spotify in the Nordics Source: ABI, EMI Insight
  • 18. Market Potential: Scandinavia Leading The Way... RoW To Follow 18 Paying Subscriber Penetration Sweden + Denmark 2014 100% 302% 750% 100% 127% 192% 800% 600% 400% 200% 0% Sweden Q1 Sweden Q2 Sweden Q3 Denmark Q1 Denmark Q2 Denmark Q3 Source: ABI, EMI Insight
  • 19. Product Content & Strategy
  • 20. Deezer Users Show Strong Engagement and Satisfaction 510 47 54% Source: Deezer, June 2014. Note: Only streams lasting more than 30 seconds are accounted as streams (1) Active users are people who listened to at least one stream (more than 30 seconds). DAU = daily active user, MAU = monthly active user. 20 Streams per direct Premium+ subscriber per month Deezer NPS score among users DAUs / MAUs(1) per direct Premium+ subscriber >70% share of streams on mobile devices for Premium+ subscribers
  • 21. Deezer Users Show Strong Engagement and Satisfaction 21 Hear this: Algorithms + Human Recommendation
  • 22. Deezer Users Show Strong Engagement and Satisfaction 22 Flow: a New Way to Discover Music
  • 23. Deezer Users Show Strong Engagement and Satisfaction Flow: a New Way to Discover Music Flow a Step Up in User Satisfaction Share of Tracks Not Skipped When Listening Through Various Radio Formats 84% 83% 74% Playlist radio Flow Radio (non-discovery) (discovery) (discovery) Flow now accounts for 8% of global streams on Deezer
  • 24. Deezer Has the Largest Catalogue Among Streaming Services 24 • Deezer develops extensive depth and breadth in all genres and all countries in order to: • Satisfy all local tastes • Satisfy all music genre communities • Give emerging artists an opportunity to be heard everywhere • Virtuous cycle where content providers want to work with us due to the global exposure we can provide 30m 25m 20m 15m The Deezer Catalogue Strategy Deezer Catalogue Ranks No. 1 35m 1m Deezer Local Content India Brazil Thailand Africa Country South Korea Japan Brazil Italy Sweden France Denmark Netherlands Germany % 100% 100% 90% 90% 95% 80% 80% 80% 70% Deezer Local Labels Examples % of Top 10 Albums by Local Artists
  • 25. Bragging rights: Deezer Has a State-of-the-Art Product “Deezer is willing to take a risk when it comes to discovery” “As for now, I have been more impressed with Deezer’s integration into 3rd party apps – eDJing, Soundrop, Seevl, and others” “I was convinced to switch to Deezer and I’ll be wrapping up my Spotify account” 25 Deezer vs. Spotify : a side-by-side comparison Rude Baguette. December 2, 2013 “We like Deezer's light, clear and simple design across both the web/desktop versions of the service and the mobile/tablet versions, and think it's easier to navigate than the dark, quite complex interface of Spotify” “Deezer has a cool feature called Hear This (…), a music feed that's personalised for you (…) We prefer Here This to Spotify's 'Discover' feature” Deezer vs Spotify comparison: what is the best music streaming service? Tech Advisor. June 09, 2014 “The big difference between the two (Deezer and Spotify) is the team Deezer has, they know about music” Melomanos a la Obra El Universal (Mexico’s largest newspaper). August 14, 2014 “Deezer arguably has the strongest editorial personality of any of these services” “Deezer often includes a little comment from the Deezer staff member who is making these recommendations, and includes their name, job title, and picture, giving it a strong human touch” Best Streaming service: which one to download? Trusted reviews, August 14, 2014 “The Swedish population is clearly enjoying the unique recommendation engine and Deezer’s approach to ensuring content is localised” “Deezer proudly topped the podium with nine out of ten points. Natives Spotify took second place while Norwegian Wimp came in third position” Deezer beats spotify M3 sveriges prylsajt. July 7, 2014
  • 27. Deezer Has An Adaptable and Scalable Platform… Adapted to each country Adapted to each partner Adapted to each user • Customizable technical integration for a turnkey solution • Joint development of UX and co-branding • Ability to launch 90 days after signing • 4 years of experience in the making 27 • Local user interface: language, currency, payment methods • Local content: tracks, genres, editorial recommendations, marketing offers • Groundwork laid over past 3 years for populations now beginning to stream • World-class, in-house developed recommendation algorithm • Flow: personalized one-click radio playback • TO COME: seamless active and passive experience • TO COME: super-serve selected customer segments The adaptability of our platform allows us to be nimble and scalable
  • 28. Deezer Has An Adaptable and Scalable Platform… Adapted to each partner Music Branding? Social Media engagement? Decrease churn? ARPU upsell? Reach new customer segments? The adaptability of our platform allows us to be nimble and scalable 28
  • 31. 31 Deezer Tre Fly your customer to Paris to see Pharrell Williams live
  • 32. Deezer Global Subscriber Acquisition Strategy 32 Partners / Vendors Bundled • Partners promote Deezer through targeted channels • Customer benefit s from a A Definition promotional period Direct (subscribers billed by Deezer) Standalone B2B2C partnerships Paid traffic acquisition • Users coming at zero cost • Long-term result of all other initiatives including brand awareness Indirect (subscribers billed by telco operators) Organic • Deezer is included in the customer mobile contract • No price transparency • Carriers promote Deezer unbundled to their installed base • Customer benefits from a promotional period B C D • Acquisition through traditional networks and affiliation tools NA
  • 34. 36 Indirect Carrier Deals Globally….and more to come soon! 34 Western Europe Country Telco Partner Type Latin America Country Telco Partner Type Other Country Telco Partner Type A Note: HB: Hardbundle; SA: Standalone; As at June 2014. Others
  • 35. A Win-Win Proposition for Both Deezer and Carriers Benefits to Deezer Benefits to carriers  Quickly reach mass market in any country  Marketing support  Long-term revenue visibility (hard-bundle)  Lower churn due to carrier billing (standalone)  Partners guarantee minimum volumes  Brand image improvement • Music positioning • Artist marketing activities & endorsement  Customer acquisition • Unlimited music proposal • Exclusive partnerships  Customer retention • Churn and migration drop thanks to Deezer stickiness  ARPU enhancement • Upgrades: higher tariff plans • Upsell: data add-ons or revenue share on standalone offers 75% 17% as much as 70% 35 60% 10% >€500k media spend + sales incentives, in-store mktg Churn Reduction: ARPU Uplift: A Churn Reduction: Marketing Spend Commitments:
  • 36. Zoom on Orange partnership [2010; 2018 renewal] Hard bundle Deezer is bundled in selected Orange plans for the whole time of the contract at no additional cost for the customer 7 Orange countries Offering Deezer bundled with - 60% in churn and migration Deezer active users vs. non active users* their plans 51 Deezer with Orange NPS* (vs. 50 for Deezer direct) 2010 2011 2012 2013 Orange France V1 (Incl. investment from Orange & WorMee acquisition) Orange UK (EE) Orange Poland Orange Romania Orange France V2 (Deal renewal, extension of Deezer bundle to all plans) Orange Senegal Orange Ivory Coast Orange Mauritius 2014 Orange France V3 Orange Spain Orange North Africa Source: Orange France figures *Deezer survey on Orange France customers A
  • 37. T-Mobile partnership overview [2010; 2016 renewal] 6 T-Mobile countries Offering Deezer bundled - 75% in churn and migration Deezer active users vs. non active users with their plans 2012 2013 2014 T-Mobile Austria T-Mobile Netherlands T-Mobile Croatia [T-Hrvatski Telekom] T-Mobile Czech Republic T-Mobile Albania [AMC] T-Mobile Slovakia +10% ARPU Deezer active users vs. non active users Source: T-Mobile Netherland 2013 figures Hard bundle Deezer is bundled in selected T mobile plans for the whole time of the contract at no additional cost for the customer A
  • 38. Tigo partnership overview [2013; 2014 renewal] Hard bundle Deezer is bundled in customer’s potpaid plans and prepaid daily, weekly or monthly offers 6 Tigo countries Offering Deezer bundled with their plans 2013 2014 Tigo Bolivia Tigo Colombia Tigo Guatemala Tigo Honduras Tigo Paraguay Tigo Salvador First tests on prepaid offers Tigo Prepaid offers launched in all Tigo countries 43% Acquisition impact % of Tigo-Deezer users declaring Deezer as the main reason for choosing this Tigo plan 17% Anti-churn impact % of Tigo-Deezer users who would leave Tigo if the Deezer bundle was over Source: 2014 Deezer survey on Tigo-Deezer Colombia customers A
  • 39. 39 Direct B2B2C Partnerships B Large-scale Partnerships Launched from Early 2014 Opportunity to Expand into Other Partnership Models We have partnered with 400+ brands Cars Banks Travel Food Ticketing Media Loyalty programs 22 countries >30,000 new subscribers in 4 months 12 countries Estimated >1m units to be sold in 12 months with Deezer promotional offer More than 100 countries Estimated >10m units to be sold in 12 months with Deezer promotional offer A B C Many of which are partnerships that can be replicated on a larger scale
  • 40. Soft bundle Deezer in two sentences Global Streaming Service Award winning recommendation engine
  • 41. Soft bundle Everyone is unique Adapt the service to: Every user Every partner Every country Market Philosophy:
  • 42. Thank You! aes@deezer.com 18th Annual Nordic & Baltic Telecoms Executive Forum September 2014

Notes de l'éditeur

  1. 3 especially to make the offer as attractive as possible Big surprise in the end!
  2. Late 2006, just some months after Spotify In time of downloads As revolutionizing in France as Spotify
  3. Innovative products
  4. 36 Telco partners Orange, T-mobile, Telenor and Vodaphone (New Deal in Germany)
  5. award winning recommendation engine Human editors
  6. Access rather than ownership
  7. Norway and Sweden that are most “saturated markets” are still growning. 17-24% Finland + Denmark + Baltics as the next big opportunity.
  8. Revolution in US has just begone The downloads finally starting to decrease, while Streaming becoming significant
  9. What’s happening in Sweden. We are happy to be riding a wave of success.
  10. Super fast growth in Sweden. Both users converting from other services. And first time streamers via partners. 8x sweden + doubled in Denmark. Deezer is a significant part of that 17% - 24%
  11. Spotify - take notes. Good to be a quick grower, but our priority is a actually something else. We are really focusing on those premium users that are so engaged they use the service every day
  12. We are bout to solve the “curation” issue. Playlists, recommendations, new albums are nice but most of the users just want to have THE FREEDOM to press play and get just the right racks.
  13. Our goal is to always license Local music!!
  14. IDG - Swedish Praising our recommendation engine and large catalogue are really paying off.
  15. Just as we customize the service to every country and the services adapts to every user, we also make sure to customize our B2B strategy for every partner we work with
  16. Share music assets.
  17. Inserting our own music DNA helping our partners to leverage their USPs
  18. Our own music DNA helping our partners to leverage their USPs. Activate the artist, activate the label, activate the blogs and social meida. Win win win - partner get the credibility by being a true music player. And reach new in this case younger audiences. In Sweden we work together with Tre on all the music content in their social media strategy.
  19. Paris is a very nice city Empowering out telco partners to position themselves as true music and entertainment players
  20. Different ways, and in every case, it’s customized to suit the Telco entertainment strategy. Bundled: no price transperacey - great for uspelling the end users to more expensive plans with more data och pure entertainment plans.
  21. Our Music DNA - Further satisfy our partners’s customers
  22. ALSO LAUNCHING WITH VODAPHONE IN GERMANY