The oft-criticized freemium business model still has the support of investors. Paris-based music subscription service Deezer has raised $130 million from Access Industries, parent company of Warner Music Group, and previous investor Idinvest, according to a report in French newspaper Le Figaro (via TechCrunch). The report says $32.6 million will be used to buy out previous investors. At press time, a rep for Deezer had not responded to Billboard.biz's request for comment.
Deezer is expanding rapidly but is relatively unknown in the United States because it has avoided the world's biggest music market. The service has the same business model as Spotify: free, ad-supported streaming for PC listening and mobile access for paying customers. It also has the familiar price points: £4.99 for basic service and £9.99 for premium service.
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Deezer's Facebook page currently claims the service has 1.5 million subscribers, 26 million users and 6 million unique visitors per month in France.