Global Background Music Market Is Estimated To Witness High Growth Owing To Rising Commercial Activities And Increasing Need For Enhancing Customer Experience
The global Background Music Market is estimated to be valued at US$ 24.13 Bn in 2024, exhibiting a CAGR of 6.9% over the forecast period (2024-2031). Furthermore, the increasing usage of background music in cafes, restaurants, and retail stores to enhance customer experience and boost sales is driving the market growth.
Market Dynamics:
Rising commercial activities such as growing number of retail stores, restaurants, hotels, etc. has been a key driver boosting the demand for background music worldwide. Background music helps in creating suitable ambience in commercial places which positively impacts customers' moods and spending behavior. It distracts customers from waiting time and makes them stay longer in the premises.
In addition, background music is widely being used to enhance customer experience in various establishments. Playing music suitable for the brand and customers' tastes helps in leaving a long lasting impression. It reduces customer anxiety and stress levels while shopping or waiting which impacts purchases positively. Many retail chains and restaurants have reported increased sales and average basket size owing to well-curated background music playlists. The need to offer differentiated customer experience through ambient elements like music is a major factor driving the increased adoption of background music solutions globally.
Growing Demand for Effective Ads Playout in Public Spaces is Driving the Market Growth
The global background music market is witnessing significant growth due to growing demand from merchants and businesses to play customized music in their premises to create unique atmosphere and enhance customer experience. Background music is found to increase sales and brand awareness while also positively impacting customers emotionally. Various retail outlets, restaurants, hotels, and other commercial spaces are leveraging background music platforms to attract more footfalls and boost revenues. This has encouraged many vendors to offer differentiated background music services tailored as per the industry and brand ethos.
Need to Create Brand Identity and Deliver Targeted Messaging
With rising competition, brands are focusing on unique in-store branding and communication techniques to engage customers. Background music services allow businesses to curate playlists that align with their brand personality while also delivering targeted messages through lyrics and genres. Customers tend to spend more time in stores with familiar music as it creates a comforting shopping environment. Many background music providers now offer sync capabilities that allow advertisements, offers, and information to play at designated times in between songs to enhance customer awareness and conversions. This has significantly increased their adoption across industries looking to reinforce their brand identity.
Regulatory Compliance Regarding Royalties Hinders Widespread Adoption
While background music services are gaining traction, complex licensing and copyright laws regarding music royalties act as a major restraint. Vendors are required to obtain proper licenses from music rights organizations to legally play curated music tracks in public domains. Non-compliance can lead to huge monetary penalties, thereby discouraging new companies from experimenting with these solutions. Additionally, royalty rates are not standardized and often differ based on the music source, number of listeners, and business scale. This regulatory uncertainty increases compliance costs, limiting the penetration of background music globally.
Growing Digitalization of Music Libraries Presents Lucrative Opportunities
The rising digitalization of music libraries by most record labels and artists has created abundant opportunities for background music platforms to expand their offerings. Traditionally, licensing physical music for commercial spaces involved higher costs and operational challenges. However, cloud-based digital libraries now provide easy access to millions of pre-licensed tracks, covering all genres, languages, and time periods. Service providers are leveraging this to build curated playlists and deliver superior background music experience to customers remotely. The growing popularity of streaming audio also allows adding new musical content seamlessly without any hardware changes. This convergence of digital transformation and music proliferation will drive further revenue opportunities.
Popularity of Streaming Services Enhances Market Reach
The prolific growth of music streaming subscriptions among consumers worldwide is opening new prospects for background music platforms. As people are now accustomed to listening ad-supported tracks on-the-go, restaurants and retailers can capitalize on this behavior by integrating popular streaming apps and channels as part of their in-store ambiance. This resonates strongly with young audiences while also widening the listener base. Some providers have forged strategic partnerships with music streaming leaders to offer integrated playback solutions tailored for commercial applications. The widespread affinity towards streaming is poised to expand the market reach of customized background music solutions in the coming years.
In conclusion, the global background music market presents an attractive landscape driven by ongoing digitalization and need for compelling brand engagement. While licensing complexities and costs remain challenges, opportunities around streaming personalization are accelerating future adoption. The overall industry growth depends on continued innovation by vendors to provide cost-effective, compliant, and immersive music experiences.
Link - https://www.coherentmarketinsights.com/market-insight/background-music-market-2563
Key Developments:
- In March 2024, Beatoven.ai developed an AI-powered platform that enables podcast, video, and game creators to generate unique, royalty-free background music for their commercial content
- In September 2023, USEN Co. Ltd., in partnership with TTNE Co., Ltd., a manufacturer of saunas and sauna-related products, will begin distributing three original music channels targeting sauna facilities and home sauna rooms. The channels will be themed "Sauna Sauna Tomote*1 Music", providing curated musical content to enhance the sauna experience for users.
- In March 2023, Mood Media, the world's leading provider of on-premise experiential technology and media solutions, acquired Vibenomics, the top in-store digital advertising platform. The financial details of the transaction were not publicly disclosed.
- In November 2022, USEN Co., Ltd. and Recochoku Co., Ltd. collaborated to launch WEDDING MUSIC BOX, a comprehensive web and mobile application-based background music (BGM) service package designed to simplify the management of music for wedding ceremonies and receptions.
Key Players:
Almotech Media Solutions, CSI Music, Easy on Hold, Express Melody, Imagesound, Mood Media, NSM Music Group, Pandora for Business, PlayNetwork, SiriusXM for Business, Sunflower Music, TouchTunes, Usen Corporation, Mood Media, and PlayNetwork
