The music industry misses out on $1.4 billion in U.S. royalties each year because businesses play copyrighted music without a commercial license, Soundtrack founder and CEO Ola Sars said.
A study commissioned by Soundtrack and released Thursday, Nov. 5, surveyed around 1,500 representatives from some 15,000 U.S. business locations. It found that only 19% of businesses that play music fully comply with commercial music requirements.
Nearly 80% of U.S. businesses use consumer streaming services in their premises, although those services are licensed only for personal use. Just 5% of respondents said they held licenses from all four major performing rights organizations: ASCAP, BMI, GMR and SESAC.
Sars said commercial music streaming for businesses could become a new growth area as revenue growth from subscription and ad-supported streaming slows. Soundtrack recently partnered with SESAC to expand its offering to U.S. businesses.
For about $35 a month, subscribers get Soundtrack’s licensed commercial player, playlist tools that can be customized for different locations, and access to more than 155 million tracks represented by ASCAP, BMI, GMR and SESAC.
Based in Sweden, Soundtrack generates roughly 60 million euros ($67 million) in annual recurring revenue and is on track to reach $100 million by 2028. The company, formerly called Soundtrack Your Brand, raised $15 million from investors in 2023.
