July 21, 2024

The Background Music Market Displays Promising Growth Opportunities With The Upsurge In Commercial Establishments

The global Background Music Market is estimated to be valued at US$ 1.55 billion in 2022 and is expected to exhibit a CAGR of 6.3% over the forecast period 2018-2026, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Background music is any form of music played in a specific location for functional, contextual, or atmospheric purposes. Examples of background music include music played in department stores, elevators, restaurants, dental/doctor offices, and on-hold telephone lines. Background music aims to positively influence customers, mask other noises, and create a pleasant ambience without being intrusive or demand too much attention from the listeners. It serves as an effective branding tool to improve customer satisfaction and boost sales. Background music providers offer easy-to-use, customizable, and cost-effective solutions that stream high quality content digitally for use in hold messaging, retail environments, dining areas, and other commercial settings.

Market key trends:

One of the key trends spurring growth of the background music market is increasing adoption of subscription and streaming-based business models by music providers. Streaming solutions allow immediate access to constantly updated libraries of licensed music without upfront costs of physical media or hardware. Providers such as PlayNetwork, TouchTunes, and Mood Media offer seamless integrations with payment platforms and data analytics capabilities. Their digital platforms and mobile apps provide an easy way for businesses to discover, customize, and dynamically adjust background music playlists according to time, day, location, demographic etc. This boosts customer retention and Average Revenue Per User for music providers.

Porter’s Analysis

Threat of new entrants: The background music market has moderate threat of new entrants due to high initial investments required to enter the market. However, digitalization is lowering the entry barriers.

Bargaining power of buyers: Buyers have moderate bargaining power due to availability of alternatives. However, switching costs are low.

Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to presence of many content providers in the market.

Threat of new substitutes: Threat of substitutes is low as there are limited substitutes for background music available.

Competitive rivalry: The background music industry experiences high competitive rivalry due to presence of many global and local players offering similar products and services.

Key Takeaways

The global Background Music Market is expected to witness high growth, exhibiting CAGR of 6.3% over the forecast period, due to increasing commercial establishments and growing demand from retail spaces.

North America dominates the global background music market currently. However, Asia Pacific is expected to grow at the fastest pace during the forecast period owing to rapid growth of organized retail and commercial sectors in countries such as China and India.

Key players operating in the background music market are PlayNetwork, Inc., TouchTunes Music Corporation, Sirius XM Holdings, Inc., Almotech Media Solutions, Imagesound, Easy on Hold, Soundnet Limited (Soundjack), Xenox Music & Media B.V., Qsic Pty Ltd., Express Melody, OpenEar Music, Auracle Sound, Cloud Cover Music, and Mood Media Corporation. PlayNetwork, TouchTunes Music Corporation and Sirius XM Holdings are identified as the market leaders with maximum market share currently.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it