Photo Credit: Deezer
As it looks to break even by 2025, Paris-headquartered streaming platform Deezer has announced a long-term deal to power Sonos Radio.
Deezer, which arrived on the Euronext Paris last year, just recently unveiled its tie-up with Sonos (NASDAQ: SONO). Under the pact, billed by execs as one component of “a very exciting journey,” Deezer beginning in April “will deliver key services for Sonos Radio and Sonos Radio HD.”
For reference, the latter is the Sonos-owned streaming offering’s ad-free tier and costs $7.99 per month in the U.S. The overarching Sonos Radio rolled out in April of 2020, is accessible via the Sonos app, and, according to higher-ups, brings “together more than 60,000 stations from multiple streaming partners.”
Now, aside from a roughly 90-million-track catalog, Sonos Radio will be equipped with metadata, licensing, and royalty management services from Deezer. The Access Industries subsidiary and Sonos, which began expanding their longstanding partnership in earnest last year, are also poised to collaborate “for growth and monetization of the service” moving forward.
“In addition, Deezer will support ongoing innovation to develop and expand the Sonos music experience,” the companies wrote of their multifaceted deal, “exploring new ways to give listeners around the world an easy way to discover music and soundtrack their day.”
Regarding the union’s scope, 16-year-old Deezer and 21-year-old Sonos expect to reach 16 countries (including the U.S., Canada, the U.K., France, and Germany) out of the gate.
Bearing in mind Deezer’s initially mentioned break-even objective as well as a goal of generating €1 billion annually, CEO Jeronimo Folgueira touted the agreement’s perceived significance in terms of helping his company to expand in strategically important markets.
“This is the start of a very exciting journey for Deezer and Sonos,” communicated Folgueira. “Through this partnership Deezer can reach new listeners in major markets around the world, including the US. Sonos has revolutionized the way we enjoy music and audio in our homes, with exceptional multi-room speakers, fantastic sound quality and thoughtfully curated Sonos Radio services. We can’t wait to play a key role in expanding this great customer offering.”
And in remarks of his own, Sonos CEO Patrick Spence emphasized the development’s potential benefits for his business’s customers.
“Delivering a best in class branded content experience for our customers is an essential part of our long-term growth strategy and Deezer continues to be an excellent partner for supporting our ambitious goals to help the world listen better,” the BlackBerry veteran Spence relayed in part.
Deezer is scheduled to post its complete 2022 financials on the 28th, and when the market closed today, the company’s shares (DEEZR on the Euronext Paris) were worth €2.80 apiece – a nearly 13 percent improvement from Thursday’s close.