Deezer reports €131m Q3 revenue with AI-driven fraud detection system

Paris-based music streaming platform Deezer reported consolidated revenue of €131.4 million for the third quarter of 2025 on October 23, 2025, representing a 1.9% year-over-year decline at current exchange rates but only a 1.1% decrease at constant currency. The company's results demonstrated sustained momentum in direct subscriber growth while facing anticipated declines in partnership revenue.

According to the earnings report, nine-month revenue for 2025 totaled €398.5 million, down 0.9% year-over-year but up 0.4% at constant currency. The performance aligned with the company's full-year guidance of flat to slightly declining revenue.

Direct subscriber growth remained the strongest aspect of Deezer's quarterly performance. The segment generated €87.9 million in Q3 2025, up 2.4% from €85.8 million in the same period last year. France showed particularly robust expansion, with subscribers reaching 3.7 million by the end of September, an 11.7% increase on a like-for-like basis. This marked acceleration from 8.3% growth at the end of June and 6.4% at the end of March.

"Subscriber growth in France has accelerated for a third consecutive quarter, confirming the positive impact of our differentiation initiatives in our home market," stated Alexis Lanternier, CEO of Deezer. Family plan offerings drove much of the French market success, though they contributed to lower average revenue per user in the direct segment.

The Rest of World direct subscribers reached 1.8 million, reflecting 6.1% like-for-like year-over-year growth. Lanternier attributed this expansion to the platform's stance on transparency and fairness in music streaming, alongside product innovation initiatives.

Partnerships revenue presented the quarter's most significant challenge. This segment generated €35.6 million in Q3 2025 compared to €41.5 million in Q3 2024, declining 14.2% or 13.2% at constant currency. The decrease primarily reflected the residual impact of a model shift with Mercado Libre. Total partnership subscribers stood at 3.5 million, down from 4.7 million a year earlier.

However, partnership average revenue per user rose 11.2% year-over-year to €3.2, suggesting a strategic focus on higher-value arrangements. Recent smaller partnerships and RTL+ partially offset the Mercado Libre impact.

The Other revenue segment, comprising advertising and ancillary revenue, reached €7.9 million in Q3 2025, up 17.4% from €6.7 million in the prior year period. At constant currency, growth reached 20.5%. White-labeling solutions for hardware and media partners drove this performance.

Deezer's artificial intelligence detection system emerged as a defining technical achievement during the quarter. As of September 2025, the platform detected delivery of over 30,000 fully AI-generated tracks daily, accounting for more than 28% of total daily delivery. This represented a significant increase from 18% in April 2025.

According to the company's statement, fully AI-generated songs are automatically removed from algorithmic recommendations and excluded from editorial playlists. The system ensures these tracks do not significantly dilute the royalty pool while providing a transparent user experience. Deezer became the first music streaming platform to explicitly tag AI-generated music.

The detection system addresses mounting concerns about artificial intelligence in digital advertising and content platforms. Google deployed AI-powered tools that achieved a 40% reduction in deceptive advertisements, while invalid traffic rates reached 18% on web platforms and 31% on mobile applications according to industry research.

Deezer launched an updated universal sharing feature in Q3, enabling seamless cross-platform sharing of playlists from Deezer to other streaming services. Following the April 2025 launch of universal sharing for individual songs, playlists can now be opened on Spotify, Apple Music, and YouTube Music. Automatic song recognition technology identifies equivalent tracks across platforms and redirects users to the appropriate version of each song.

The platform continued diversifying strategic partnerships across telecommunications, sports, digital media, and business-to-business verticals. New agreements included Norlys in Denmark, Fitness Park and Molotov TV in France, and Deezer for Business offerings. In Brazil, partnerships with media platform Azerion and digital marketplace Chippu created new market opportunities.

Deezer and Azerion entered an exclusive agreement for audio and video monetization in Brazil. The partnership includes direct integration with Hawk, Azerion's fully owned, omnichannel demand-side platform. Through Hawk, advertisers can access Deezer's exclusive audio and video inventory with advanced audience targeting, automated deal management, and real-time performance insights.

The streaming audio market continues experiencing significant transformation. Audio advertising commands 20% of consumer media time but receives only 2.9% of advertising revenue, highlighting persistent underinvestment in the channel. Spotify's advertising revenue declined 1% year-over-year to €453 million in Q2 2025, though the company's programmatic adoption increased 64% following its ad exchange launch.

Newsweek named Deezer to its list of the world's most trustworthy companies in 2025. The ranking included 1,000 companies across 20 countries based on surveys of 65,000 people and extensive social media listening. Deezer was the only music streaming company on the list, appearing in the Media & Entertainment category alongside Warner Music Group and Universal Music Group.

The company's financial guidance remained consistent with previous announcements. Deezer confirmed expectations for flat to slightly declining full-year 2025 revenue. Given solid financial performance year-to-date, management anticipated another semester of positive adjusted EBITDA in the second half of 2025. The platform remained on track to deliver positive free cash flow for the second consecutive year.

Geographic revenue distribution showed France generated €81.6 million in Q3 2025, up 3.9% from €78.5 million in the prior year period. Rest of World revenue totaled €49.8 million, down 10.2% from €55.5 million. For the nine-month period, France accounted for €241.8 million of total revenue, with Rest of World contributing €156.7 million.

Deezer operates in more than 180 countries with approximately 550 employees based in France, Germany, United Kingdom, Brazil, and the United States. The company provides access to a full-range catalog of high-quality music, lossless HiFi audio, and industry-defining features on a scalable platform. Founded in 2007 in Paris, Deezer is listed on Euronext Paris with ticker DEEZR.

The platform's commitment to transparency and fairness in music streaming extends beyond AI detection. Deezer was the first platform to introduce a new monetization model designed to better reward artists and the music that fans value most since the inception of music streaming. This approach positions the company distinctively within an increasingly competitive market where major platforms including Spotify, Apple Music, and Amazon Music compete for subscriber growth and advertiser investment.

Looking ahead, Lanternier emphasized the platform's focus on new fan-oriented product launches and innovations for artists. These initiatives aim to deepen engagement, expand creative control, and further differentiate the listening experience on Deezer. The AI detection system and personalization features are attracting global attention, opening opportunities beyond core markets.

Industry observers note that Deezer's positioning as a leader in AI detection and artist fairness could provide competitive advantages as regulatory scrutiny of digital platforms intensifies and consumers become more conscious of content authenticity. The platform's technical capabilities in identifying AI-generated content may prove valuable as the intersection of artificial intelligence and entertainment content continues developing.

Timeline

• April 2025: Deezer launches universal sharing for individual songs, with 18% of daily track deliveries identified as fully AI-generated
• April 3, 2025: Spotify launches programmatic ad exchange and AI-powered creative tools
• June 30, 2025: Apple Music announces 15,000-square-foot studio facility to commemorate 10th anniversary
• July 22, 2025: DoubleVerify releases report documenting brand safety improvements and 101% surge in bot fraud activity
• July 29, 2025: Spotify advertising revenue drops 1% year-over-year despite 64% increase in programmatic adoption
• August 12, 2025: Google implements AI-powered fraud detection achieving 40% reduction in deceptive advertisements
• September 2025: Deezer AI detection system identifies over 30,000 fully AI-generated tracks daily, representing 28% of total daily delivery
• September 10, 2025: Spotify announces lossless audio streaming rollout for Premium subscribers
• September 30, 2025: Deezer Q3 2025 quarter ends with 9 million total subscribers including 5.5 million direct subscribers
• October 23, 2025: Deezer reports Q3 2025 revenue of €131.4 million with 9.7% like-for-like direct subscriber growth

Summary

Who: Deezer, the Paris-based independent music streaming platform with 550 employees across five countries, reported quarterly earnings through CEO Alexis Lanternier.

What: The company reported Q3 2025 consolidated revenue of €131.4 million (down 1.9% year-over-year) while detecting over 30,000 fully AI-generated tracks daily through its proprietary detection system. Direct subscribers grew 9.7% on a like-for-like basis to 5.5 million, with France adding subscribers at 11.7% and Rest of World at 6.1%. Partnerships revenue declined 14.2% to €35.6 million, while Other revenue increased 17.4% to €7.9 million.

When: The financial results covered the third quarter of 2025 (period ended September 30, 2025) and were announced on October 23, 2025, at 17:45 CET. The AI detection system data reflected September 2025 metrics showing acceleration from 18% in April 2025 to 28% by September 2025.

Where: Deezer operates globally in more than 180 countries with primary operations in France, which generated €81.6 million in Q3 revenue (up 3.9%). Rest of World contributed €49.8 million (down 10.2%). New partnerships expanded in Denmark (Norlys), France (Fitness Park, Molotov TV), and Brazil (Azerion, Chippu).

Why: The earnings matter to the marketing community because they demonstrate how independent streaming platforms navigate competitive pressure from major technology companies while pioneering AI detection systems that address content authenticity concerns. Deezer's 28% AI-generated content detection rate and its impact on royalty distribution illustrates emerging challenges for digital advertising and content platforms. The company's partnership diversification strategy across telecommunications, sports, and digital media verticals shows alternative monetization approaches beyond pure subscription or advertising models, relevant as the audio advertising market addresses its 22% investment gap despite commanding 20% of consumer media time. The results also provide benchmark data for evaluating streaming platform performance during a period when Netflix's advertising business is expected to double and Spotify faces advertising revenue challenges despite programmatic growth.