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The background music market size is forecast to increase by USD 421.73 million, at a CAGR of 7.69% between 2022 and 2027.
The growth of the market depends on several factors, including the demand for background score in the retail sector, the growing use of background score in public spaces, and increased regulatory pressure to prevent piracy and copyright infringement. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The demand for background score in the retail sector is notably driving the market, although factors such as the low-profit margins for background score companies may impede the market. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The demand for background music in the retail sector is the key factor driving the global market. The right tempo and rhythm of BGM have proven to influence engagement with the environment and increase the time spent shopping. Soft and slow melody has a relaxing effect on shoppers, which leads them to browse longer at stores. Background score, therefore, plays an important role in creating a positive store experience, which is a major selling point of background score subscriptions globally.
Background score has several advantages that help businesses retain and attract new customers. Moreover, there is also a high demand for digital audio content, including background score. This demand for digital audio content is attributed to the rise in the number of Internet downloads and the availability of melody-related applications. The increase in the online streaming of melody is expected to drive the demand for background score during the forecast period.
The growth of music subscription services will fuel the global market. The industry has witnessed continuous growth in revenues over the last three years with high revenues observed from subscription-based streaming channels. These streaming channels include paid subscription services, streaming radio services, and advertisement-supported streaming services.
Traditionally, people used to buy on a pay-per-track/album basis. However, the high cost of the work under such a revenue regime discourages people from purchasing them. This compels them to resort to piracy to fulfil their demand. Moreover, the growing number of mobile applications and websites has helped digital services, such as background soundtrack services, attract a large audience. The increase in the number of mobile applications is attributed to the increased adoption of smartphones and tablets. Such factors will increase the market during the forecast period.
The low-profit margins for background music companies are a major challenge to the global market. The industry is highly competitive, with the presence of many companies that provide homogeneous services at very low costs with some variation. A major share of the revenues earned by the companies goes to the artists, content creators, publishing companies, and labels, which leaves very little income for them (bgm providers). This slim profit margin makes it difficult for companies to sustain themselves in the market, thereby proving to be a challenge for the market.
The providers of background score are largely dependent on the volume of subscribers and sales to generate profits. However, with the presence of several technology streaming startups, garnering a large user base is becoming difficult, while the profitability and income in the industry are beginning to stagnate. Even large soundtrack providers are facing difficulties in increasing their profits. Most other background streaming providers are also facing low margins and losses. Although the number of subscribers continues to grow, the revenue-generation model is expected to remain a challenge for the companies.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their expansion strategies.
Global Market Customer Landscape
companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AMI Entertainment Network LLC - The company offers background music with a robust catalog, scheduling tool, and curated playlists. Also, the company offers entertainment solutions to different types of public commercial spaces, such as bars, restaurants, and the hospitality industry.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
A qualitative and quantitative market growth analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the music streaming segment will be significant during the forecast period. Streaming services include websites that let users watch videos, listen to audio, and subscribe to podcasts. Moreover, the use of smart devices will also rise along with the increased penetration of digital platforms, which will drive market during the forecast period.
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The music streaming segment showed a gradual increase in market share with USD 661.05 million in 2017 and will continue to grow by 2021. Owing to functions such as automatic playlist customization, song recommendations, and hassle-free connectivity on apps and browsers, streaming platforms are becoming more popular. Additionally, the expanding podcast genres of these portals are fueling market. One of the most popular trends in the global market is the expanding use of 5G connections. Thus with the high demand for digital platforms, the global market is expected to witness high growth during the forecast period.
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Europe is projected to contribute 44% of market growth by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. During the forecast period, the market in Europe is expected to experience accelerated revenue growth as countries in Eastern and Central Europe still remain untapped. Europe accounts for the highest per capita consumption. The global average consumption by a user with access to a media device is four hours. However, an average citizen in the region (Europe) consumes 15% more than the global average. The high level of passion for the art is expected to drive the market in Europe.
The report forecasts market growth by revenue at global, regional & country levels and provides a market research and growth analysis of the latest market trends and growth opportunities from 2017 to 2027. The market has been segmented by product type, end-user, and region.
Background music plays a crucial role in enhancing the ambiance of various establishments, creating pleasant shopping environments, and elevating the overall customer experience. With the advent of online services, businesses now have the flexibility to curate playlists that complement their brand image. The market segmentation for background soundtrack caters to different segment types, including hotels and motels, ensuring that diverse establishments can tailor their audio environments.
Manufacturers in the industry continually introduce novel products to meet the evolving demands of businesses and consumers. The integration of Audio-Visual (AV) system equipment enhances the immersive experience, providing a seamless blend of visuals. However, challenges such as noise pollution need to be addressed to maintain a harmonious atmosphere. As the market continues to evolve, businesses seek innovative solutions to create engaging and distraction-free environments, both in physical establishments and through in-app web services. The Market also serves various industries like malls, retail stores, elevators, and Hotels & Motels with royalty-free background. It helps create ambiance and reduce distractions during meals. Producers and music service providers cater to these needs, enhancing customer experiences.
Background Music Market Scope |
|
Report Coverage |
Details |
Page number |
162 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.69% |
Market growth 2023-2027 |
USD 421.73 million |
Market structure |
Fragmented |
YoY growth (%) |
7.5 |
Regional analysis |
Europe, North America, APAC, the Middle East and Africa, and South America |
Performing market contribution |
Europe at 44% |
Key countries |
US, Canada, China, UK, Germany, and Italy |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
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. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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