Music streaming service Deezer and Spanish-language television programmer TV Azteca say they are shaking up audio streaming in Mexico with an alliance to bring Mexicans all the music and podcasts they love. The exclusive partnership will accelerate Deezer’s growth in Mexico as TV Azteca and companies of Grupo Salinas promote Deezer across their businesses and services.
Mexico’s music streaming market is expected to more than double and exceed $700 million between 2019 and 2024. Deezer already has a growing user base in Latin American countries including Mexico, Colombia and Argentina. Deezer is also the second largest streaming service in Brazil. The partnership with Grupo Salinas companies will enable Deezer to become a key audio streaming player in Mexico and accelerate its growth in the region.
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. Today, users can 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.
Spanish-speaking listeners can look forward to a wide range of original content from Latin artists. They will be also able to enjoy a growing number of expertly curated and locally-relevant playlists. Deezer also recently launched podcasts in Mexico, helping listeners enjoy a large number of audio shows and stories.
“Mexico is one of the fastest growing music markets in the world,” noted Hans-Holger Albrecht, CEO of Deezer. “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. 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,” added 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.
The total expected investment of $40 million will take place over a multi-year period. The total investment values Deezer at €1.3 billion ($1.4 billion), which represents a 30 per cent increase in the company’s value from the successful funding round in 2018.