Here are the biggest threats to music streaming services, as outlined in Deezer's IPO filing

Hans-Holger AlbrechtDeezerDeezer CEO Hans-Holger Albrecht.

French music streaming service Deezer has outlined its plans to go public in Paris, and its IPO filing gives a fascinating look at the way the music streaming service works.

As well as user numbers and revenue, the document also indicates the risks that the business may face in the future. Deezer talks in-depth about rival music streaming services such as Apple Music and Spotify, and also about the difficulties of negotiating with record labels to bring music to its platform.

Here are some of the most interesting sections of Deezer’s IPO filing:

First off, let's start with Deezer's revenue. It's not profitable.

Deezer

Here's how Deezer's revenue breaks down by country. France is where it's most popular.

Deezer

This is another key chart: The number of Deezer subscribers. 'Bundle subscribers' are users who became a subscriber via a deal with one of Deezer's carrier partners.

Deezer

Here's where things get really interesting. As part of its IPO filing, Deezer lists the biggest threats to its business. One fundamental threat is that music streaming stops being a way that people listen to music.

Deezer

Deezer says other streaming services are also a big threat. It mentions Apple Music and Spotify as its biggest rivals.

Deezer

If we go into a recession then Deezer says that people will turn to free music streaming services like YouTube instead of paying out for Deezer.

Deezer

All music streaming services have to make deals with the big record labels. Deezer says if it can't secure deals in the future, then customers could leave because their favourite music isn't on the service.

Deezer

Deezer says a possible future risk is that more and more artists release albums exclusively on certain streaming sites. If Deezer is left out, then it could lose customers.

Deezer

What if people don't want to pay up? Deezer says a potential risk is that users don't go from free trials to regular monthly payments.

Deezer

Deezer is reliant on partnerships with telecoms companies for many of its subscribers. Customers who buy phone contracts with carriers often get a Deezer subscription thrown in. If those deals end, Deezer could be hurt.

Deezer

Deezer is expanding to include things like podcasts on its platform. It admits it doesn't have much experience with that, so it would be a problem for the business if it gets it wrong.

Deezer

Deezer could get hacked! If a bunch of user data gets stolen then people aren't going to want to sign up to Deezer.

Deezer

Also, Deezer could go down. If a cyber attack takes the site down, people aren't going to want to subscribe to Deezer.

Deezer

Here's something you might not have thought about: What if the internet goes down?

Deezer

And finally, here's one of the biggest threats to the business: Deezer may not be able to turn a profit!

Deezer

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.