Background music refers to any type of musical audio played in the background in businesses, public places, and other venues. It includes easy listening, soft rock, jazz, classical music and other similar genres that are not obtrusive. Background music systems provide licensing of music that is legal to play in commercial spaces. They offer music library subscriptions and customizable playlists as per the ambience and target audience of different kinds of businesses and establishments. The global Background Music Market is estimated to be valued at US$ 1495.12 Mn in 2023 and is expected to exhibit a CAGR of 4.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

The increasing usage of background music in businesses and public places is a major opportunity for the growth of the background music market. Playing preferable music can positively impact customers' moods and spending habits. Background music creates a calm, enjoyable atmosphere that encourages customers to stay longer in a store or establishment. Research shows that playing desirable music can increase sales by up to 40% and leads to higher spending per customer. As more businesses recognize this impact of music on customers and open to new strategies to enhance customer experience, the demand for licensed background music is expected to rise significantly in the coming years. This growing usage of background music as a strategic tool to increase footfall and sales will drive the growth of the global background music market during the forecast period.

Porter's Analysis

Threat of new entrants: The background music market requires significant upfront investment in licenses, content and distribution channels limiting new competition. However, startups can disrupt leveraging new technology.

Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and bargaining for better deals. However, switching costs restrict bargaining.

Bargaining power of suppliers: Suppliers of music content and licensing have significant power given scarcity of quality content libraries and reliance of market participants on music.

Threat of new substitutes: Alternatives like personalized playlists pose a threat. However, benefits of background music like boosting sales continue its demand.

Competitive rivalry: Intense rivalry exists among key players for market share and customers via expansion, acquisitions and exclusive deals.

SWOT Analysis

Strengths: Strong brand image and catalog depth provides first-mover advantage to key players. Customer loyalty enhances revenue visibility.

Weaknesses: Significant dependency on content licensing increases supply chain risks. Infrastructure investments result in high fixed costs.

Opportunities: Emerging markets and business segments present large untapped potential. Technological advancements improve targeting and usage analytics.

Threats: Disruption from personalized smart solutions and vertical-specific digital platforms poses revenue threat. Macroeconomic challenges impact consumer spending.

Key Takeaways

The Global Background Music Market Size is expected to witness high growth during the forecast period supported by increasing commercial establishments and indoor venues worldwide seeking to enhance customer experience.

Regional analysis - North America dominates currently owing to widespread commercial infrastructure and holds around 35% market share. However, Asia Pacific is projected to grow at the fastest pace led by China, India with burgeoning retail and hospitality sectors seeking to appeal customers through latest trends.

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. Companies are focusing on exclusive content partnerships, upgrading delivery platforms and expanding geographic footprints.

For More Insights, Read: https://www.trendingwebwire.com/background-music-market-demand-growth-and-regional-outlook-by-2030/