Where is the Music for Business industry going? In this post I’ll make a general forecast considering the industry’s current situation, evolving technology, and consumer preferences.
The music for business industry was once dominated by Muzak. They’re now called Mood since merging with DMX and Mood Media. Though they still sell to the majority of billable locations worldwide, their business performance has been poor. The stock is just 19 cents a share. Market cap (total value of the company) is $35 mil, and debt is a massive $669 mil (see their financials page 22). Mood’s ability to charge a high price and their market share are both being eroded by new competitors.
Music for Business was once delivered exclusively by satellite and CD’s. But the Internet has become the delivery platform of choice for business decision makers. That’s because of the improved variety, reliability, speed and lower cost achievable with streaming.
Despite the trend to on-line buying, the retail store is not dead and restaurants, offices and other venues using music to entertain customers will continue to grow. The growing U.S. population and an improving economy will lead to more brick and mortar store openings. Business decision makers will continue to prefer the better overall experience that streamed music delivers at its’ lower cost.
The outlook for our industry is bright. It will be dominated by providers who innovate and deliver ever-increasing value. Changing technology will improve the provider’s ability to deliver value in new and exciting ways. Music, digital signage and other products will converge onto one web-based platform.