Deezer, a, music streaming service based in France, has recently bought Muve Music, the subscription based music service, from Cricket. Deezer found it origins as an online music company, founded by Marhely, who initially developed his business through Blogmusik, and currently serves millions of music listeners worldwide. Cricket, the U.S. wireless carrier, which was bought out by AT&T last year, initially introduced Muve Music to customers as an unlimited music downloading, subscription based service. It reached over two million paid subscribers, making it the second most popular subscription music service in the U.S., following Spotify. Our friends over at Modus (http://modusmodus.com/) were instrumental in creating Muve and making it a success.
With Deezer’s purchase of Muve, the aim is to further its growth in the U.S. market, as well as give consumers a greater set of options for streaming audio content than available from existing competitor services. Muve initially began as Cricket’s subscription option, as an opportunity for subscribers to gain access to unlimited music downloading for an small additional monthly fee. Typical Muve customers have been ones that are unwilling to spend a lot of money on music, which will enable Deezer to tap into a segmented market. Furthermore, with Deezer’s new leadership, Muve will expand in enabling consumers to stream music, rather than solely downloading, as it previously had enabled, creating greater competition with competitors. With Deezer now in charge, it will offer the Muve service as a standalone service for $6 a month to Cricket customers, as well as offer customers a free ad-supported version of Muve, restricted to streaming.
We will see how Deezer’s purchase will affect the company’s presence in the ever competitive music market, and soon found out how it’s leadership on Muve will affect the app’s performance within the market.