Mergers and Acquistions News
Categories: Media & Information Services
September 7th 2011, 16:18PM
French digital music provider Deezer has announced a merger with mobile operator Orange.
The deal, made public yesterday (September 6th), will bring the companies in competition with the European music subscription leader Spotify, according to the Financial Times.
It is also reported that such services are actively seeking partnerships like this one in order to lower sale costs. Revenue would be shared but lower profit margins would be offset by regular long term contracts.
Deezer, which revealed its plans for a UK service earlier this month, has 1.2 million subscribers in France - compared to Spotify's 1.6 million worldwide - many of them through a previous regional deal with Orange.
As part of the arrangement, a mobile-only offer will be available to Orange customers, thereby saving on the cost of obtaining the services separately.
Spotify announced a merger with Virgin Media in July, which will offer music subscriptions bundled with Virgin products. 
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