The valuation of Paris-based music streaming service Deezer has neared $1.5 billion (€1.3 billion) following the announcement of a high-profile partnership with Mexican media conglomerate TV Azteca.
Deezer, which belongs chiefly to Warner Music Group majority owner Access Industries, revealed its agreement with TV Azteca (a subsidiary of Mexican conglomerate Grupo Salinas) in an official release. The announcement was shared with Digital Music News.
Under the deal, TV Azteca has purchased a small (though unspecified) stake in Deezer, and the investment reflects a valuation of over $1.46 billion (€1.3 billion). Moreover, the figure marks a 30 percent hike from the worth that was assigned to Deezer during its prior round of funding in 2018, per the press release.
TV Azteca, owner of prominent assets and stations such as Mexico’s Azteca Uno and Azteca 7, will promote Deezer across its networks as part of the contract. The multi-year advertising campaign is valued at $40 million – including the renaming of Azteca Uno live music program Mugo Live, which will become Deezer Live and introduce viewers to “new and emerging local talent” moving forward.
Also worth noting is that Grupo Salinas’ electronics and appliances retail chain, Grupo Elektra, will promote Deezer to its customers. For reference, the brand boasts more than 1,140 points of sale throughout Central and South America.
Additionally, Deezer is in the process of retooling Mugo Live’s app, and it recently began offering Spanish-language podcasts to subscribers located in Mexico.
Addressing the deal with Grupo Salinas and TV Azteca, Deezer CEO Hans-Holger Albrecht said: “Mexico is one of the fastest growing music markets in the world. … We see huge growth potential in countries like Mexico, Colombia and Argentina and are investing in marketing and subscriber growth. Our experience and number two position in Brazil will help us become the main challenger in the region.”
Music’s ongoing international growth is prompting many well-known entities to establish presences in rapidly developing markets. In the music streaming sphere specifically, we reported yesterday that Tencent Music had inked a major anime soundtrack partnership with Japanese animation studio CoMix Wave. The agreement centers on CoMix Wave’s film soundtracks appearing on Tencent Music apps, as well as joint creative projects between the companies.
Lastly, Apple Music unveiled a new African music discovery series, Africa Rising, today. The announcement comes a couple months after the streaming service made its way to 52 additional countries, including many African nations.