BACKGROUND MUSIC MARKET ANALYSIS

The availability of free music sources on the internet is presenting a significant challenge for the growth of the supply background music market. Many business establishments that would benefit from background music in their stores and offices are reluctant to invest in paid subscriptions or licenses when there is readily available free music on platforms like YouTube. While free music was earlier only available through questionable means, today many artists are choosing to put their work on channels like YouTube without restrictions on commercial use.

This has made it very easy and inexpensive for businesses to simply play royalty-free music playlists or radio stations available on YouTube. They can easily curate compilations of ambient, jazz or other suitable genres and let it play continuously without having to worry about copyright issues. Some businesses are also creating their own private playlists and channels instead of investing in licensed services. While this allows cost savings for businesses, it is severely limiting the scope for dedicated background music providers to expand their customer base and generate higher revenues.

Market Opportunities: Emergence of on-demand music services

The emergence of on-demand music services has opened up new opportunities for growth in the supply background music market. With on-demand streaming, businesses have access to vast music libraries containing millions of songs that can be tailored to suit their branding and audience. They can easily create customized playlists without having to invest in purchasing individual tracks or albums. This offers unprecedented flexibility and cost savings compared to traditional methods of supplying background music through physical media or satellite radio subscriptions.

On-demand services allow background music to be targeted according to location, time of day, and customer demographics. Playlists can be dynamically updated based on real-time data and analytics. This hyper-personalization ensures that the music is always aligned with the mood and vibe of the business premises. Various sensors and IoT devices are also being utilized to sync music according to customer footfall, energy levels, and ambient conditions.