Background Music Market To Grow By $527.2 Mn With Retail Sector Driving Demand

The global background music market size is estimated to grow by USD 527.2 million from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 8.76% during the forecast period. Demand for BGM in retail sector is driving market growth, with a trend towards growth of music subscription services. However, low margins for BGM vendors poses a challenge. Key market players include Almotech Media Solutions, AMI Entertainment Network LLC, Auracle Sound Ltd., Brandtrack Inc., CMRRA SODRAC Inc., Heartbeats International AB, HIBOU MUSIC LIBRARY, Imagesound Group, Liberty Media Corp., Mood Media Corp., Open Ear Music Ltd., Qsic Pty Ltd., Rockbot Inc., SOUNDMACHINE, Soundreef, Soundtrack Your Brand Sweden AB, Stingray Media Group., TouchTunes Music Corp., USEA Pte Ltd. , and Xenox Music and Media B.V..

Key Market Trends Fueling Growth

The music industry has experienced significant revenue growth in the past three years. Primarily driven by the popularity of subscription-based streaming music channels. These channels include paid subscriptions, streaming radio, and ad-supported services. In contrast to the traditional pay-per-track/album model, the high cost of music under this regime discouraged many from purchasing music legally, leading to piracy. However, the emergence of affordable monthly subscription services, ranging from USD 5.99 to USD 9.99, has made music consumption more accessible and cost-effective. The proliferation of mobile applications and websites has facilitated the growth of digital services like Background Music Market.

Market Challenges

The Background Music Market is a competitive industry with numerous vendors offering similar services at low costs, resulting in thin profit margins. Major revenue shares go to artists, content creators, publishers, and music labels, leaving little income for background music providers. To generate profits, these providers rely on subscriber volume and music sales. However, attracting a large user base is challenging due to the emergence of music-streaming startups. Even large providers like Spotify, which operates the Spotify Business Background Music store, have been running losses for several years. Vendors will continue to face a significant challenge in generating revenue in the industry, despite the increasing number of music subscribers.

Research Analysis

The Background Music Market encompasses the production and distribution of ambient music and audio content for various industries. This market caters to sectors like Retail, Hospitality, Healthcare, Entertainment venues, Recreation, and more. Ambient music plays a significant role in creating the right ambiance, enhancing customer engagement, and improving business productivity. In Retail, it sets the tone for a modern shopping experience, complementing consumer relationships and boosting sales. In Hospitality and Entertainment venues, it adds value to the consumer experience, creating a soothing environment for relaxation and enjoyment. The market offers digital subscription-based music, digital broadcasts, and Beat Suite Music for businesses. The recorded sound is used in commercials, films, marketing videos, and soft tunes to improve sleep quality.

Market Research Overview

The Background Music Market encompasses various sectors, including Retail, Hospitality, Healthcare, Entertainment venues, and the Corporate sector. Ambient music and audio content play a significant role in these industries. Enhancing customer engagement, creating a modern infrastructure, and providing a value-added experience. TouchTunes and other music streaming services offer digital subscription-based music for retail stores, cafes & restaurants, leisure & hospitality, and public organizations. In retail environments, background music sets the tone for a soothing shopping experience, complementing consumer relationships and product offerings. In hospitality and entertainment venues, music adds to the ambiance and contributes to a positive mood, reducing stress, tension, nervousness, and anxiety. The AV system is crucial for delivering music and visual content, with multiple speakers and digital broadcasts creating a consistent and high-quality listening experience.

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provide actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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