ABOUT IMAGERY M&AS FUNDING THE TEAM IN THE NEWS About. MUGO is a social music player that gives users the ability to listen to music together from different locations; listen and watch live, 360-degree VR performances; create customized playlists by mood; follow DJs and listen to their playlists; and use the personalized. As part of the deal, Deezer will also take over a weekly show on TV Azteca called Mugo Live, watched by 2m viewers every episode, and use it to showcase new and emerging local talent.
By | Published on Friday 3 July 2020
Deezer has announced a major strategic partnership with Mexican broadcaster TV Azteca and its parent company Grupo Salinas that has been valued at $40 million. Under the deal, which will see TV Azteca get a minority stake in the streaming firm, the two partners will seek to capitalise on the ongoing streaming boom in Mexico.
Deezer will also take over the popular Azteca Uno TV show Mugo Live and rename it Deezer Live, with a focus on introducing new and emerging local talent via regular live performances. Israeli music company MUGO Inc. Has been acquired by streaming giant Deezer as part of its investment deal with the Mexican company, Grupo Salinas. The Mexican company's investment in the streaming service will be $40 million, bringing its total valuation to $1.4 billion — a major leap in value for Deezer. Deezer is also acquiring the social app Mugo, founded by Ori Segal, Shay Goldberg and Roman Slutsky. READ ALSO: How streaming platforms are taking Latin American productions to new global audiences Mexico’s music streaming market is expected to more than.
Among other things, the two companies say, “music fans in Mexico will discover Deezer through creative campaigns on TV Azteca, demonstrating that Deezer is the one tap music experience that effortlessly delivers the music for the moment”. Meanwhile “Spanish speaking listeners can look forward to a wide range of original content from Latin artists”.
Latin America is a priority region for Deezer, which already enjoys second player status in the Brazilian streaming market, mainly thanks to its early arrival in the country and some mobile partnerships. When announcing the TV Azteca deal yesterday, Deezer said Mexico’s streaming music market in particular is expected to double in size in the next few years.
Its new business partner in the region will heavily promote Deezer across its channels and websites – and via the retail operations of another Grupo Salinas division called Grupo Elektra – to try and win over those Mexican consumers signing up to music streaming for the first time. That will include giving the streaming platform its own TV show. Or, technically, rebranding an existing show currently linked to another music app called Mugo. That show, currently called Mugo Live, will become Deezer Live.
Announcing all this, Deezer CEO Hans-Holger Albrecht said: “Mexico is one of the fastest-growing music markets in the world. We are excited to bring Grupo Salinas on board as a strategic partner and welcome them as a new investor in Deezer. We see huge growth potential in countries like Mexico, Colombia and Argentina and are investing in marketing and subscriber growth. Our experience and number two position in Brazil will help us become the main challenger in the region”.
“We already have the team in place to make sure that Mexican music fans find the content they love”, he went on. “Thanks to TV Azteca we will have an unprecedented reach in Mexico, which means we can make even more content for Mexican music fans. We are also excited to start implementing our proven retail strategy by working closely with Grupo Elektra’s stores across the nation”.
Speaking for TV Azteca and Grupo Salinas, Moshe Arel added: “We are pleased to form this alliance with a world-class company like Deezer. This will be one of the most innovative and disruptive partnerships in the market. It is an exciting time to be proactive and to participate in the fast-growing music streaming industry while we connect music fans in Mexico”.
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Deezer says that the new deal values its company at 1.3 billion euros, a 30% increase on the firm’s valuation the last time it raised investment back in 2018. That time existing shareholder Access Industries – also the owner of Warner Music – pumped some more money into the company alongside the likes of Saudi Arabia-based investment firm Kingdom Holding and Dubai-based media company Rotana Group.
Of course, any of you old-timers out there might remember that brief moment in the very early days of music streaming when Spotify and Deezer were considered head-to-head competitors. And the more cynical of you old-timers might then note that a recent surge in Spotify’s share price means it currently has a market cap valuation of over $50 billion. But shut up you cynical old-timers – new partners, new opportunities, a $1.3 billion dollar valuation, let’s all have a Deezer party!
Deezer is looking to muscle in on the Mexican streaming market via an alliance with TV giant TV Azteca.
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Under the new, exclusive partnership, TV Azteca – one of the largest producers of Spanish langauge programming in the world and operator of four TV networks in the country – will join with other companies owned by corporate conglomerate Grupo Salinas to promote Deezer across their businesses.
The multi-year investment is worth $40 million (£32m) and values Deezer at $1.4 billion (£1.12bn), a 30% increase from Deezer’s last funding round in 2018. Deezer refused to reveal financial details, but that valuation suggests Grupo Salinas will now have a minority stake in Deezer of around 2.85%. Deezer is controlled by Warner Music Group owner Access Industries.
Deezer plans to use the investment to target success in Mexico, following its rapid progress in Brazil, where Deezer says it is the No.2 streaming service. According to the IFPI, Mexico was the 16th largest music market in the world in 2019, with its recorded music revenues growing by 17.1% to $181m (£145m). The Mexican music streaming market is predicted to be worth $700m (£561m) by 2024.
Deezer is often regarded as a minor player in the ultra-competitive streaming sector, but claims 16m global monthly active users, and is a major force in some global markets. According to some unconfirmed reports, it recently lost its market-leading status in France, where Deezer is headquartered, to Spotify.
Deezer pulled out of an IPO in 2015, although the possibility resurfaced after Spotify's successful float. Warner Music Group recently went public on the Nasdaq.
“Mexico is one of the fastest growing music markets in the world,” said Deezer CEO Hans-Holger Albrecht. “We are excited to bring Grupo Salinas on board as a strategic partner and welcome them as a new investor in Deezer. We see huge growth potential in countries like Mexico, Colombia and Argentina and are investing in marketing and subscriber growth. Our experience and number two position in Brazil will help us become the main challenger in the region.”
“We already have the team in place to make sure that Mexican music fans find the content they love,” he added. “Thanks to TV Azteca we will have an unprecedented reach in Mexico, which means we can make even more content for Mexican music fans. We are also excited to start implementing our proven retail strategy by working closely with Grupo Elektra’s stores across the nation.”
“We are pleased to form this alliance with a world-class company like Deezer,” said Moshe Arel, director of innovation of Grupo Salinas and CEO of Azteca Play in TV Azteca. “This will be one of the most innovative and disruptive partnerships in the market. It is an exciting time to be proactive and to participate in the fast-growing music streaming industry while we connect music fans in Mexico. We believe this partnership will collaborate with their expansion strategies in the region while strengthening TV Azteca’s content offer.”
As part of the deal, the company will take over the popular television show Mugo Live and will rename it Deezer Live. The show will continue to air weekly on the national channel Azteca Uno, where it generates two million viewers per episode. Deezer will focus on introducing new and emerging local talent, with regular live performances from Mexican artists. Deezer is also acquiring the social app Mugo, founded by Ori Segal, Shay Goldberg and Roman Slutsky.
Music fans in Mexico will discover Deezer through creative campaigns on TV Azteca. Users will be able to sign up for the music streaming service directly in Totalplay. Deezer will also partner with Grupo Elektra to offer Mexican audio consumers digital music to complement their purchases throughout the extensive storefront network across the country.
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