"The one-size-fits-all streaming model does not serve those seeking deeper connections with artists": Deezer makes a profit for the first time with big plans ahead

The facts are there in black and white. Music streaming services are here to stay and all doubts as to the validity of running a global tech stack, keeping subscribers happy AND delivering a ceaseless outflow of payment to music rights holders are now – it seems – moot.

And the validity of streaming’s balancing act has just been affirmed by Deezer’s latest financials as the French streaming service, established just one year after globe conquering Spotify, just followed suit once again, with 2025 being the year that it finally got the balance right and started making money.

In February this year, Spotify reported its first ever year of profit, marking something of a watershed moment for music streaming and cementing its business case going forward. And it seems that – as ever – Deezer is only a step behind. From here on in both services get to rest easy in the knowledge that 20+ years after they started out, they’re finally generating more than they’re spending.

Deezer’s new FY24 report shows a 12% revenue increase netting them €542 million – a figure that represents double-digit growth (at +12%) which exceeded their own 10% growth target.

Let’s be clear, this is the first time the company has positive free cash flow (of €7 million) and – provided it doesn’t put a foot wrong – after years of work, Deezer’s endless money tap is now officially open.

The company achieved adjusted EBITDA break-even in the second half of the year, improving from a €28.8 million loss in 2023 to a €4 million positive in 2024. Most remarkably it did so despite a slight decline in total subscribers, representing a maturing market and the smart use of their cash.

The company did grow in its home country of France however, with revenues up 9.7% and subscriber growth of 4.3%. Meanwhile, it was also able to strike better deals in its partnerships segment, up an impressive 24% year on year.

A sharp increase in adjusted gross profit of +21.2% to €134M represented a 24.7% margin which the company attributed to strict management of fixed costs while making smarter investments in the brand.

Whatever they’re doing, it’s working

And Deezer has, of course, made a big play of what it calls its Artist Centric Payment System, being committed to what it calls “fairer streaming payments” aiming to ensure that more money reaches the artists whose music is on the platform and an attempt to position themselves as a fairer option than their streaming rivals.

Similarly the platform has been at the forefront of preventing AI generated music from crowding out human artists, both measures that will please music lovers and makers alike.

In its official statement, Alexis Lanternier, CEO of Deezer, said: “2024 was a landmark year for Deezer, marked by progress, innovation, and growth.”

Their report outlines their belief that “the young generation seeks greater control, personalization, social connections, and creative expression” and that “superfans represent a largely untapped market opportunity.

“The one-size-fits-all streaming model has flattened spending among music fans and currently does not serve those seeking deeper connections with artists. Meanwhile, artists are searching for more effective ways to monetize their most engaged audiences.

Thus Deezer now aims to deliver more personalized music experiences and social connections to fans while providing artists with the tools they need to deliver them.

“This marks an exciting new chapter for Deezer… I am confident that we will deliver significant value for fans, artists, partners, and shareholders in the years to come,” promises Lanternier.