Global Background Music Market - Insights
Global background music market generated revenue of US$ 1.35 billion in 2017. By 2026, the background music market is expected to be valued at US$ 2.31 billion with a CAGR of 6.3% over the forecast period. AV system segment held dominant position in the global background music market in 2017 and is expected to retain its dominance over the forecast period. AV system segment generated revenue of US$ 824.5 Mn in 2017.
Availability of variety of music online and affordable subscription services has increased demand for background music. Rather than using compact disc, retailers are now downloading and constantly updating music from online sources. According to Coherent Market Insights’ analysis, paid music streaming subscription revenue was around US$ 230 Mn in 2018 and will reach around US$ 342 Mn by end of 2022, globally. Moreover, to attract more consumers, royalty free background music is being offered with high quality. For instance, Soundstripe offers royalty free production music at an affordable price.
North America held dominant position in the global background music market in 2017 and is projected to retain its dominance throughout the forecast period. In 2017, the U.S. accounted for largest share in terms of revenue in the region. Among product type, music streaming segment is projected to exhibit highest CAGR over the forecast period. Music streaming allows consumers to stream and listen to music with the help of internet connected devices such as mobiles, PCs, and laptops. Due to advancements in technology, people have instant access to products and services. This is expected to drive growth of the music streaming segment over the forecast period. According to Coherent Market Insights’ analysis, subscription-based music streaming is the largest contributor to global revenue of the background music market.
Growth in travel and tourism sector is expected to offer lucrative growth opportunities for the global background music industry
Music in various styles and permutations such as amplified or acoustic, instrumental or vocal, or any other format is a universal and ubiquitous cultural expression. It represents human culture, thus can have immense impact on human minds. Except in few countries such as Afghanistan, Mali, and others, music is available across almost all countries. Music travels through commercial or informal digital broadcasts, downloads, recordings, films, etc. impacting travelers’ consciousness either in a positive or negative way. It enhances the ambience of a place. Background music providers have also tracked this and incorporated the idea in their offerings. For instance, Beatsuite offers adventure and travel genre of music, which can be sorted by mood/themes, keywords, popularity, and release date. Moreover, travel vlogging is in trend as people get to share exceptional experiences by exploring remote places. In such cases, background music also plays a crucial role. A right soundtrack can make a travel-inspired experience more enticing. For instance, a Vlog titled Dream on Costa Rica used the PremiumBeat track ‘Earth, Wind and Power’ by Simon Charrier. In this video, when the music kicks in at the 19-second mark, it complements the inspiring, dreamlike quality of the video perfectly.
Figure 1. Global Background Music Market, Potential Growth Opportunities, by Region, 2017-2026
Source: CMI, 2018/19
Figure 2. Global Background Music Market: Value Chain Analysis
Source: CMI, 2018/19
Music sources include sources from where audio or video is taken, which then is converted into background music with the help of some modifications. These are the audio/video distribution platforms or music sharing websites that enable to upload, share, and promote an audio/video. Some of the examples include Soundcloud, MySpace, Spotify, iHeart Radio, MixCloud, The Free Music Archive, Epidemic Sound, and others.
Hardware components include audio/video systems that are used to play audio/video. Components of AV systems include display, user interface, and others. Manufacturers of AV systems include Sony Corporation, Bose Corporation, Yamaha Corporation, Cloud Electronics, JBL, and others. Companies supplying AV systems offer design, installation, maintenance, and other services across various applications. For instance, MVS Audio Visual offers AV solutions for background music, which are provided for segments including retail store, bar, pub, restaurant, and schools.
*Other stakeholders in the value chain for the global background music market are explained in detailed in the report by Coherent Market Insights
Global Background Music Market: Key Players
Major players operating in the global background music market include 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.
Background music market study focuses on music systems and music streaming services in applications such as retail, leisure and hospitality, restaurants, public organizations, and other spaces.
Mood Media, PlayNetwork, and TouchTunes are some of the key players in the background music market. The global background music market is highly fragmented due to presence of large number of players in the market. The players compete based on system performance, pricing, and variety in offerings to sustain their position in the market.
Market Drivers: Increasing demand for background music in malls and retail sectors is driving the market growth since past few years
Background music is an essential part of malls, retail stores, elevators, and other spaces to create soothing environment. With emergence of e-commerce and thus, decreasing customer footfalls in stores, retailers are finding new ways to enhance customer experience at their brick and mortar stores. Background music influences engagement of customers and increases their overall time spend in the departmental stores. This enhances the customer’s shopping experience in malls and retails stores due to which retail stores and malls contribute significant share in the growth of background music market. The impact of this driver is expected to remain high over the forecast period.
Currently, consumer spending on shopping has increased considerably. According to Worldwide Market Reports’ analysis, retail stores are undergoing considerable shifts in terms of technology, which is affecting changes in consumer behavior. More and more consumers are preferring online shopping, owing to ease of transactions, availability of wide range of choices at one platform, and larger percentage of young population active on smart devices. Online retail witnessed 300% growth between 2000 and 2018 in the U.S. as per the U.S. Commerce Department in 2019, while sales of departmental stores dropped almost 50%. Gap, JCPenny, and Victoria’s Secret announced closures of 300 departmental stores. This has affected the way retailers have been marketing and selling their products to consumers. More emphasis is given on the ambience provided in the store including easy access to stock, assistance from staff, cleanliness, and background music to create positive atmosphere that may affect consumer’s buying decisions.
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