French company Deezer has become Spotify's big rival on the global music streaming market, outgrowing the Swedish company in France. However, the battle won't be fought on US soil because, according to the New York Times, the Paris based enterprise is, at least for now, putting off its launch in North America. The company is preparing its expansion to over 150 different countries, but doesn't feel the US is an interesting market right now.
For the expansion, Deezer has received a financial injection of 100 million euros from Access Industries, the group that owns Warner Music. A move that seems to confirm that the industry sees future possibilities for this kind of service. Even so, both Deezer and Spotify haven't yet found the way to secure their business model, and will close this year with substantial losses. In the case of Deezer, profit won't come until 2014, when its service will be implemented in the new markets, because, as analyst Giles Cottle says in the newspaper, “the only way to reach profitability is to achieve massive scale or to rewrite the record industry deals, which is unlikely to happen.”