Deezer CEO Tyler Goldman: Audiophile Streaming Market 'Product-Driven,' Not 'Marketing-Driven'
May 1, 2015 at 12:10 PM (PT)
While appearing on a panel at MUSEXPO in HOLLYWOOD earlier this week, DEEZER CEO TYLER GOLDMAN talked with ALL ACCESS on the changes that have impacted his high-quality subscription audio streaming service since his Power Player interview last OCTOBER.
Chief among them is the high-profile launches of high-quality pay streamers TIDAL and NEIL YOUNG’s PONOS, and the subsequent failure -– at least perceptively -- to live up to lofty expectations. “One of the lessons we’ve learned is that you don’t bring up large artists on big stages to make big announcements,” he told ALL ACCESS. “I’m joking, of course, but the truth is this is not a marketing-driven category, but a product-driven category. There’s not some huge demand from the consumer for streaming services. We have to build demand by having superior offerings. It brings up the old marketing parlance of pull marketing instead of push marketing.”
Since coming to the U.S. after becoming the second largest streaming serviced in the world, DEEZER’s plan seems to be incremental growth, starting with the audiophile market, getting on new platforms, then adding quality content to its programming bundle in the form of Talk content provider STITCHER (NET NEWS, 10/24/2014) and MUVE MUSIC, which offers discount mobile-only rate of under $6 a month.
“It’s our goal is to super-serve as many people as possible, which is hard to do,” GOLDMAN said. “It would be foolhardy to think you could do that overnight. We’re building our greater value to segments of customers, even though all customers get the complete product. If we build a great Latin offering, all of our customers will get it, but it will be more important to Latin music lovers. It’s all about building a bundle; the analogy I use is SIRIUS, which addresses different audio segments with different content offerings.
“We’re going to continue to increase the value of our offerings to attract more listeners and to keep the listeners we have for long periods of time. What’s happening so far is that we started with the audiophile segment. We’re now good seeing good traction with AT&T and CRICKET users, who get mobile-only content for $5.50 a month. We’re building more value into our bundle and targeting at our audience; we want to keep increasing its value.”
Regarding STITCHER, it “hasn’t been integrated yet,” he noted. “We’ve been working hard in the background. Contrary to popular rumors, not every day is an off day in FRANCE. STITCHER will be fully integrated in DEEZER within the next few months.”
While the music streaming market seems very crowded these days, GOLDMAN isn’t worried about taking market share from his rivals. “There are 45 million paying for music subscription services worldwide,” he said. “As we grow and build into AMERICA, the audience is skewing younger, but not that young. They have to be willing to pay; the U.S. audience is about the same as that of SPOTIFY and the other services. We’re just bringing in the first wave of users, the early adapters, but that’s not that many customers; 98% of AMERICA still don’t pay for music, so our goal is not about persuading other services’ customer to come to us, but to attract the other people to become our customers. We want to get the free users and those who are not audio streaming at all.”