Last October, Deezer acquired a minority stake in ticketed-livestream platform Driift. Now, Driift has bought another Deezer-backed livestream startup, Dreamstage, and received an additional $4.5 million from the publicly traded streaming service.
Deezer unveiled Driift’s Dreamstage buyout – and the multimillion-dollar investment – via a formal release today. One of many livestream businesses that emerged when in-person entertainment was shelved, two-year-old Driift upon receiving the initially mentioned support from Deezer said that it had sold north of 600,000 tickets.
Meanwhile, May of 2021 saw Deezer take an interest in Dreamstage, which former Sony Music exec Thomas Hesse founded. The post-purchase Driift is expected to absorb Dreamstage and continue operating under its existing name, with Ric Salmon (previously a Sony Music and Warner Music A&R exec, currently a partner and director at London’s ATC Management) remaining CEO and Claire Mas (formerly head of digital for Island Records) staying on as COO.
Though the companies’ formal announcement message indicates that Driift will remain “an independent entity,” Deezer injected £4 million (currently $4.46 million) into the livestream business, as noted, thereby becoming its “largest shareholder.”
Perhaps the most interesting takeaway from Deezer’s formal announcement message is CEO Jeronimo Folgueira’s ambitious vision for livestreaming – especially as his company looks to break even “by 2025” and generate over $1 billion during the same year.
“As the home of music, this is a milestone moment for Deezer,” said Folgueira. “Connecting artists and fans through engaging experiences is an essential part of our growth strategy, and adding livestreaming capabilities to our portfolio is a key component to deliver on this ambition.
“Driift has already built an unparalleled reputation for bringing groundbreaking livestreams to music fans all over the world, and we consider that the addition of Dreamstage’s tech and sales platform will take the business to the next level. We have full confidence in the Driift team to deliver fantastic results,” he concluded.
Despite the ongoing return of crowd-based entertainment, certain livestream shows are attracting a substantial number of viewers, and it’ll be worth following the space’s evolution moving forward.
An array of traditional concerts and festivals have been livestreamed in 2022, for instance, presumably offering both artists and promoters access to a modest revenue stream (as well as promotion) that wouldn’t otherwise exist.
Moreover, Apple Music, Amazon Music, and Spotify alike are leaning into exclusive performances in an effort to attract fans, and the Access Industries subsidiary Deezer appears poised to capitalize upon Driift in a similar way during the coming months and years.