• Sweden's news in English
 
app_header_v3

Spotify set to be challenged on home turf

The Local · 30 Mar 2014, 15:02

Published: 30 Mar 2014 15:02 GMT+02:00

Deezer, which claims to have five million paying users, recently announced a deal with 3 Sweden to challenge Spotify and boost its company profile in the country. 

The deal with 3 Sweden allows customers, who use their phone network, to get a free month of the streaming service. Deezer are hoping to capture a slice of the Swedish market where Spotify has long been dominant.

"The party has scarcely begun," Mathieu Molinero, Deezer boss for northern Europe, told the TT news agency.

After the initial success of free download sites like Napster at the start of the millennium the number of people listening to music online has rocketed.

Indeed, the amount of paying customers for music streaming services has increased by 250 percent since 2010. It's estimated that 28 million users are now accessing their favourite tracks via their computer, smartphone or tablet and paying for the privilege. 

Last year Spotify announced that they had six million paying users. In total, the Swedish firm has 24 million active users who can access a database of 20 million songs.

By contrast, Deezer has 12 million active users but does have a larger song selection of over 30 million tracks.

Despite the impressive numbers both market leader Spotify and challenger Deezer will likely need far greater numbers of paying users in order to thrive in the long-term.

"Spotify CEO Daniel Ek has said they would need in the region of 40 million paying customers for the business model to hold in place for the long-term. It will probably be the US that is key for those that want to dominate the world market," Daniel Johansson, music industry researcher at Linné university, told TT.

Story continues below…

Johansson cited the case of Google, which has made a low-key to the Swedish music streaming market, arguing it could be the long-term winner in the battle for music fans online.

"Google is also a company with substantial financial muscle than has the resources to bleed a few years if needed. There are also rumours that Apple is negotiating with record labels to make iTunes into a streaming service. That would change the gameplan properly," he said. 

TT/The Local/pr

The Local (news@thelocal.se)

Your comments about this article

Today's headlines
So Sweden has high taxes? Not as high as you might think
A taxpayer hands in their tax declaration. Photo: Bertil Ericson/TT

So you think Swedes pay a lot in tax? Others pay much more, according to a new study.

Man injured in shooting at Malmö shopping mall
Rosengård Centrum in Malmö. Photo: Björn Lindgren/TT

Police cordoned off an area around a shopping centre in Malmö after a man was shot on Tuesday afternoon.

The Local List
Ten Swedish phrases you only hear in summer
Let's work on that tan. Photo: Vilhelm Stokstad/TT

Summer always leaves foreigners baffled by Swedes' unique seasonal habits. Here's The Local's guide to navigating small talk when the sun comes out.

Swedish kids' TV cooks up storm with condom haggis
How, er, not to make haggis. Photo: SVT screenshot

Not the Swedish Chef as you know him.

Swedes outgrown as world's tallest people
How tiny they must look to a Dutch person! Photo: Henrik Montgomery/TT

Forget the myth about the tall, blond, modern Viking.

Record number of drowning deaths in Sweden this year
Linus Magnusson och Ester Meijer, life guards at Skanör beach in southern Sweden last year. Photo: Andreas Hillergren/TT

More people have drowned in Sweden so far this year than in any other year this century. The good weather is getting the blame.

Presented by American Express
6 simple travel hacks that will make your life easier
File photo: Pixabay

Getting ready to jet off on summer holidays? Be sure to check out these tips and tricks for avoiding unnecessary headaches between packing and relaxing.

Pupils' school photo Nazi salute 'wasn't criminal'
The harbour in Simrishamn, close to where the incident took place. Photo: Jorchr/Wikimedia Commons

Four high school students who performed a Nazi salute in a school photo have had their convictions for inciting racial hatred quashed by an appeal court.

The Local List
Silly season: seven strange Swedish summer stories
But at least the weather's nice. Photo: Johan Nilsson/TT

What are Swedish journalists to do during the long dry news spell of summer? Here are the most bizarre stories we could find.

Opinion
'We don't know how Brexit will affect our time in Sweden'
Sweden-based Brit Sarah Campbell, left. Photo: Private & AP Photo/Tim Ireland

One month after the Brexit referendum Sarah Campbell, a British reader based in Uppsala, pens a love letter to her European Union.

Sponsored Article
What can newcomers learn about Sweden at Almedalen?
National
Meet the northern Swede who is the world's best mosquito killer
Sponsored Article
5 reasons you should try dating with The Inner Circle
National
Sweden's Hollywood star Alicia Vikander puts her pen in the bottle
Gallery
People-watching: July 22nd-24th
Blog updates

22 July

After the horror, carry on regardless (Globally Local) »

"This time last week, we were just digesting the horror of the Nice killings, in which…" READ »

 

11 July

Swedish quizzes (The Swedish Teacher) »

"Hej! I have created some quizzes you can take online to test your Swedish skills. Here…" READ »

 
 
 
The Local Voices
The Jewish Syrian who dreams of rebuilding his country
Sponsored Article
Gran Canaria: Where Swedes go to work (and play)
National
Watch this Swedish weather host leave his fly open... on live TV
The Local Voices
'I fled war in Syria. I never expected to be beaten in Sweden'
National
WATCH: Asylum seeker brutally beaten by Swedish bus driver
Sponsored Article
Why you should attend an international job fair
Technology
Why everyone is talking about Sweden's GTA pride parade
Sponsored Article
Why Swiss hospitality graduates are in demand
National
EU hits truck cartel with record price fixing fine
Society
OPINION: Why Sweden is the most extreme country in the world
Sponsored Article
Five easy ways to travel more often
The Local Voices
'There is equality in accommodation in Sweden: Everyone is suffering'
Sponsored Article
Why expats choose international health insurance
Gallery
Property of the week: Gräsö, Östhammar
Gallery
People-watching: July 15th-17th
Sponsored Article
'Sweden's Lauryn Hill' touches the country's musical soul
National
How to make sure you're not caught out by Sweden's old bank notes
Sponsored Article
Five things Americans should know about voting abroad
Business & Money
Why Sweden has been named the most innovative country in Europe
National
Terror attack: what should you do?
Sponsored Article
Local guide: the best of Berlin
National
French expat on the moment he was assaulted by a Stockholm bouncer
Sponsored Article
Why you need a EuroBonus American Express Card
Technology
Gunman? Nah, smartphone Swede
The Local Voices
'If the war in Syria ended today, would you go back?'
The Local Voices
‘I feel like I’m living in a grave!’
Gallery
IN PICTURES: Sweden's Princess Victoria celebrates 39th birthday
Gallery
People-watching: July 13th
National
Swedes discover surprise mountain
Politics
What Sweden's home secretary thinks of Britain's new PM
Gallery
Property of the week: Smedjebacken, Dalarna
The Local Voices
'Even xenophobic Swedes can be polite’
Politics
WATCH: A very Swedish take on Brexit...
National
Swede's fury at Daily Mail's Bråvalla 'lies'
Gallery
People-watching: July 8th-10th
The Local Voices
'The best time to be smuggled to Europe is August 20th, 2015'
The Local Voices
Swedes: Stop obsessing over your material life and start talking to strangers
3,357
jobs available