Introduction of In-store Music Service
The requirement for carefully fabricated and officially licensed in-store music playlists is growing as businesses become more aware of the crucial role of music playlists in offering enhanced brand identification and memorable shopping experiences. The utilization of in-store music services has the ability to enhance the shopping experience, persuade current clients to stay longer, and attract new customers by providing them a pleasurable and distinctive shopping experience. This creates a welcoming environment that will encourage customer engagement and loyalty.
For instance, a privately held company, Muzak Holdings LLC, which is a leading provider of sensory branding services for businesses in the United States, entered a conclusive agreement in order to be acquired by Mood Media Corporation for 345 million US dollars, inclusive of net debt be repaid on closing. The latter is a leading in-store music media specialist.
(Source:www.bloomberg.com/profile/company/14320Z:US#xj4y7vzkg)
What are the Key Drivers Affecting the In-store Music Services Market?
- Advancement in Technology to Boost the Market Growth
The market for in-store music services has undergone a revolution because of technological advances. The services can be integrated with other technologies like digital signage, mobile applications, and beacons in order to create a seamless omnichannel experience for the customers.
The vendors are offering the services with increased adoption of cloud technology, which allows them to offer a wide range of content at lower prices while minimizing operational complexity.
(Source:www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-cloud-computing)
The market players can collaborate and partner in order to provide integrated solutions to the business. The technology has made it simpler for retailers to implement in-store music services at low cost by offering access to higher-quality sound systems at minimized costs. Customized music is a way to accomplish this goal by providing a pleasant atmosphere while customer shops.
Factors Restraining the Growth of In-store Music Services Market.
- Compatibility and Integration Issues and Cost Consideration to Hinder Market Growth
The integration of in-store music services with the existing audio systems and equipment can be complex, mainly in older establishments. Additional investments and technical expertise may be needed to ensure compatibility and seamless integration. Further, in-store music services involve costs related to licensing fees. Small and medium-sized enterprises with limited budgets may find it challenging to invest in comprehensive in-store music solutions. The service also requires proper licensing agreements with music labels and copyright holders. The navigation of the complex landscape of music licensing can be a challenge for businesses, mainly for the multiple jurisdiction operating brands.
Impact of Covid-19 on In-store Music Services Market
Due to the lockdowns and restrictions on in-person shopping and dining, several businesses like retail stores, cafes, hostels, and other places were temporarily closed, causing a decline in the demand for in-store music services. However, with the gradual reopening, there was an increased emphasis on creating engaging and safe customer experiences. In-store music services had an important role in developing the correct atmosphere and sticking to safety and health guidelines. Few service providers also offered remote management solutions to ensure minimal physical contact.
Top Companies Market Share in In store Music Service Market Report 2023 Industry: (In no particular order of Rank)
- PlayNetwork
- Usen Corporation
- Pandora for Business
- Sunflower Music
- Heartbeats International
- SoundMachine
- Almotech
- Xenon Music
- Soundtrack
- Jamendo Listening
- Auracle Sound
- Express Melody
- Easy On Hold
- Open Ear Music
- Kasimu
- StorePlay
- Mood Media
- NSM Music
- SiriusXM for Business
- Custom Channels
Competitive Landscape of In-Store Music Services Market
The market for in-store music services market is highly fragmented and competitive with established players and evolving startups. The key market participants are major technology companies, music labels, and specialized in-store music service providers. They compete on music catalog size, ease of use, customization capabilities, pricing models, and customer support. The companies are hugely investing in technology advancements and partnerships in order to attain a competitive edge.
December 2020: A leading private equity firm, Vital Capital, a firm that specializes in transformational investments in established technology companies, announced that it has signed an agreement to buy Mood Media. Mood Media is the leading global in-store media solutions company dedicated to enhancing the Customer Experience.
(Source:www.businesswire.com/news/home/20201201005356/en/Vector-Capital-to-Acquire-Mood-Media)
August 2021: Mood Media Corporation announced the acquisition of DMX Holdings Inc. for USD 86.1 million in cash, inclusive of net debt repaid at closure to certain working capital adjustments. The equity value of the transaction is anticipated to be 53.8 dollars million.
(Source:www.privacyshield.gov/ps/participant?id=a2zt00000008Y8ZAAU&status=Active)
In store Music Service Market Report 2023 Analysis
Global In store Music Service Market Report 2023 talks about crucial market insights with the help of segments and sub-segments analysis. In this section, we reveal an in-depth analysis of the key factors influencing In store Music Service Market Report 2023 Industry growth. In store Music Service Market Report 2023 has been segmented with the help of its Type, Application , and others. In store Music Service Market Report 2023 analysis helps to understand key industry segments, and their global, regional, and country-level insights. Furthermore, this analysis also provides information pertaining to segments that are going to be most lucrative in the near future and their expected growth rate and future market opportunities. The report also provides detailed insights into factors responsible for the positive or negative growth of each industry segment.
By Type, The Streaming Media Service Segment Dominating the In-store Music Services Market
According to Cognitive Market Research, the increased adoption of streaming services is one of the factors boosting the growth of this segment globally. A streaming media service is a popular online entertainment source for movies, the TV shows and other streaming media; they offer alternatives to satellite and cable on-demand services at lower prices. The utilization of streaming services generally needs fees, either on the subscription or per view.
Amplification devices, microphones and speakers are also being increasingly utilized in stores in order to enhance the shopping experience for clients, and they can be linked to online music streaming programs and services like Pandora, Apple Music, and Spotify. Therefore, the Audio Equipment segment is anticipated to boost the growth of segment throughout the forecast period.
- Streaming Media Service
- Audio Equipment
By Application, the Retail Stores Segment Dominating the In-store Music Services Market
Customers are frequently in retail stores for both shopping and entertainment purposes; thus, this segment commands the largest market share for the in-store music services. Retail establishments provide their customers with a unique experience by combining entertainment, music, and shopping. The growing competition in e-commerce has made the quality of the shopping experience to become one of the main factors differentiating the physical stores. The loudness, tempo and style of the music played can assist in communicating the personality of the brand to the customer, even before entering the door.
According to Cognitive Market Research, the café and restaurant market is growing fast as it is one of the most well-liked places for clients to enjoy drinks, food and music. Hotel and leisure facilities offer their guests in-room entertainment by giving them music services, attracting more visitors.
- Retail Stores
- Instruction Cafes and Restaurants
- Leisure Places and Hostels
- Public Institutions
- Others
The North America In-store Music Services market holds the Largest Share of Global Market
According to Cognitive Market Research, North America dominated the market in 2022 and accounted for the largest share of global revenue due to several variables. The North American region dominates the market for in-store music services. The increased adoption of advanced technology and the availability of key market players in this region is creating growth opportunities for the market. The growing demand for heavy foot traffic, customization, and shifting attitude of customers towards music in the retail settings.
The United States In-store Music Services market is Foreseen to Grow at the Fastest Growth Rate During the Forecast Period
According to Cognitive Market Research, due to its significant economic size, vast global corporate presence, and diversified population, the United States is anticipated to hold a strong position in the North American area. The new service or product launches, business expansion, partnerships, and acquisitions in this country are fuelling the growth of the market. Technology improvements and cultural variety in the nation also helped to be at the top spot in the regional market for in-store music services.
The Factors for In-store Music Services to Witness Fastest Growth in the Asia Pacific Region in the Coming Years
The leading quick technological breakthroughs in this region and AI-driven solutions significantly improve service effectiveness and quality, spurring additional expansion. The rising adoption of digital technologies in retail stores throughout the nations of the Asia Pacific region, inclusive of China, India, Australia, Japan, Korea, Singapore, Thailand, Vietnam and Malaysia. The key market players and the government are taking the initiative to invest in this market for better customer experience and to increase the visits of customers.
