simfy reveals strong revenue growth - on track to break-even
Music streaming service preparing to increase global footprint
After strong growth in the last six months, Germany’s leading music streaming service simfy expects to reach break-even in the next quarter and achieve strong revenue figures well into the double digit millions this year. Accelerated global expansion is the primary target for 2012 and music discovery a clear focus.
“Our strong growth has translated into more than 2 million users and a very healthy percentage of it is paying premium users - showing us that we have achieved very good performance in our core markets”, says Gerrit Schumann, CEO of simfy. “Reaching profitability is difficult in any music business and we are well on our way to achieving that in the next quarter.”
The company is currently not seeking funding, but says a larger capital increase may be decided on in the second half of the year: “We’re in a great position being independent from external funding but we will consider our options for a larger capital raise later this year to fuel our expansion”, adds Schumann.
The company’s plans include expansion into more than 10 markets in 2012 with a number of partners, the next launch being in 30 days in the first non-European territory. simfy is currently available in four languages and these countries: Germany, Austria, Belgium and Switzerland.
While the company seeks to expand globally, it stresses the importance of acting locally. Schumann: “We see other companies try a ‘sprinkler strategy’ and establish a global service without making it a local experience. While I believe that time-to-market is important, it is even more essential to do it right. Address each music market with its unique characteristics – you need to be in the market, understand it and cater to the local content needs.”
That is reflected in simfy’s product direction as well: music discovery is the core element of this year’s product strategy: “Besides social discovery and our extensive editorial recommendations we offer already today, we will be introducing a number of new features that make music discovery very personal and define music recommendations in new ways – something we are really passionate and excited about as it is unique to the market”, says Gerrit Schumann.
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DuMont Venture was founded in 2007 as a subsidiary of M. DuMont Schauberg - a leading media corporation based in Germany. DuMont Venture is actively seeking high-growth potential companies in the Digital Media and IT segments, and financially supports the development, market launch, and internationalization of its partners. DuMont Venture is not just a source of financial support, but a valued partner who will work together with its portfolio companies and their staff to ensure the organization's success.
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