The $1.4 Billion ‘No-Brainer’ Opportunity The Music Industry Is Missing
Soundtrack, the music streamer used by restaurants and retailers globally, estimates billions are lost in revenue every year in the U.S. from businesses that unwittingly stream music illegally.
A new study commissioned by Soundtrack, a commercial music streaming platform backed by Spotify, reveals that U.S. businesses are leaving $1.4 billion in royalties on the table every year due to non-compliance with commercial music requirements. According to the study, only 19% of businesses that play music are fully compliant, with nearly 80% using consumer streaming services, which are only licensed for personal use.
Only 5% report having licenses from all four major performing rights organizations. Soundtrack's founder, Ola Sars, believes this "extreme" level of non-compliance presents an opportunity to unlock exponential growth in music industry revenue. Despite the complexity of the licensing process, Sars asserts that it is a "pretty big no-brainer" for businesses to compensate artists fairly by using licensed music in their establishments.
To address this issue, Soundtrack has partnered with SESAC, offering a commercial music streaming solution for around $35 a month, which includes customizable playlisting tools and access to a catalog of over 155 million tracks.
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