The DSP has expanded its control of the European market with the acquisitions of Tunify and Ambie.
Ola Sars
Rikard Croy/Courtesy Soundtrack Technologies
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Soundtrack Technologies, a music streaming service for businesses that’s used in Uniqlo stores and Four Seasons hotels, among others, announced it has acquired rivals Tunify and Ambie as it looks to expand internationally.
Founded in 2013 as a joint venture between Spotify and CEO Ola Sars, Soundtrack has 100,000 business subscribers across 75 countries that utilize its library of 125 million tracks, available via direct licensing agreements, in their stores, hotels and coffee shops.
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Soundtrack estimates that the market for providing licensed music to businesses is worth as much as $40 billion. By acquiring Tunify (popular in Belgium and the Netherlands) and Ambie (popular in the U.K.), it aims to consolidate a fragmented market “and integrat[e] regional legacy incumbent operators,” according to a press release.
“Music is a universal language, but business is local,” Sars, co-founder of Beats Music, said in the release. “We aren’t just acquiring customer bases; we are investing in the specific cultural and musical nuances of several markets.”
Previously called Soundtrack Your Brand, the company raised $15 million in 2023 from investors led by Matt Pincus’ MUSIC alongside Dundee Partners, adding to other Soundtrack investors including Balderton Capital, Fuel Venture Capital, Industrifonden, Telia, DIG and Matt Spetzler. Based in Sweden, Soundtrack previously raised about $40 million in 2017.
Soundtrack’s mostly North America-based clients include shoe company Dr. Martens, skincare store Kiehl’s, Joe & The Juice cafés and TAG Heuer. The company said customers of Tunify and Ambie, which count Hyatt and Hilton hotels as clients, can now use its AI playlist generator and other services.
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Soundtrack Technologies, a Music Streamer for Businesses, Buys Out Two Rivals
Overview of Soundtrack technologies’ Strategic expansion
Soundtrack technologies has rapidly become a meaningful name in the music streaming industry for businesses. Recently, the company announced the acquisition of two main competitors, marking a decisive move too consolidate it’s market position.
This strategic buyout aims to propel Soundtrack Technologies to the forefront of business music streaming services and enhance its offerings with additional content libraries,licensing advantages,and technological integrations.
Why This Acquisition Matters
In the niche market of commercial music streaming, platforms must balance thorough music selection with legal licensing and easy-to-use interfaces targeted at business customers such as retail stores, gyms, restaurants, and hotels.
By acquiring its two rivals, Soundtrack Technologies strengthens its:
- Music Catalog Depth: Gaining access to new tracks and exclusive content not previously available.
- Licensing Efficiency: Streamlining licensing agreements across a broader range of territories and industries.
- Technological Innovation: Integrating advanced AI-driven curation and scheduling tools.
- Market Share: Expanding their footprint in the growing competitive landscape of business streaming.
Key Features Enhanced Through the Acquisition
| Feature | Previous Capability | Post-Acquisition Improvement |
|---|---|---|
| Music Library Size | 500,000+ licensed tracks | 1.2 million+ tracks, including rare and exclusive titles |
| Licensing Coverage | 25 countries | Over 50 countries worldwide |
| Personalized Playlists | AI-based playlist generation | Cross-platform AI curation with contextual mood & season filtering |
| Integration Capabilities | Limited API options | Full API access for seamless POS and CRM system integration |
Benefits for Businesses Using soundtrack Technologies
Soundtrack Technologies’ expanded service offers tangible benefits for businesses aiming to improve their customer experience through music:
- Legal Peace of Mind: Complete comprehensive licensing eliminates risk of copyright infringement fines.
- Customizable Music Environments: Business owners can tailor playlists to perfectly match their brand identity and customer demographics.
- Improved Customer Engagement: Enhanced music quality and variety contribute to longer customer visits and higher satisfaction.
- Cost Efficiency: Bundled services post-acquisition lower the operational cost related to music streaming subscriptions and licensing fees.
Technology Behind Soundtrack Technologies’ Music Streaming Platform
Soundtrack Technologies leverages cutting-edge algorithms and audio streaming infrastructure tailored for commercial environments:
- AI-Powered Smart Playlists: The system adjusts music styles and tempos based on time of day, customer traffic, and business type.
- Cloud-Based Streaming: Ensures seamless and uninterrupted delivery even in multi-location setups.
- Robust Licensing Framework: Automated royalty tracking and transparent reporting for businesses and artists.
- Multi-Device Compatibility: Supports POS systems, digital signage, mobile apps, and desktop control.
How AI Enhances Business Music Streaming
Artificial Intelligence plays a crucial role in curating playlists that impact ambiance and customer mood. The acquisition allows Soundtrack Technologies to:
- Incorporate AI models developed by the acquired companies to analyze business categories.
- Offer dynamic playlist adjustments responsive to weather, special events, and promotions.
- Provide data-driven insights into customer interaction with music.
Case Study: Retail Chain Sees Increased Sales After Migration to Soundtrack Technologies
A nationwide retail chain recently switched its music streaming service to Soundtrack Technologies following their recent acquisitions. within six months, they reported:
- 12% increase in average customer visit duration.
- 8% growth in sales attributed to improved in-store atmosphere.
- Streamlined music management across 150 store locations.
This is largely attributed to enhanced playlist variety, localized music options, and reduced downtime due to the robust cloud infrastructure.
Practical Tips for Businesses Considering Soundtrack Technologies
- Assess Your Brand’s Musical Identity: Use the platform’s AI tools to create soundscapes that resonate with your specific customer base.
- leverage Licensing Advantages: Ensure full compliance with copyright laws without the hassle of negotiating multiple licenses.
- Utilize Integration Features: Sync your music with marketing events and POS data for a seamless omnichannel experience.
- Monitor Analytics: Use the reporting dashboard to track playlist performance and customer engagement metrics.
Industry Impact of the Acquisitions
The consolidation of these music streaming competitors under Soundtrack Technologies signals a trend towards vertical integration in the commercial music industry. This has these key implications:
- Market Consolidation: Smaller players may face pressure or new opportunities to join forces with larger platforms.
- Innovation Acceleration: Combining R&D resources boosts the development of smarter music curation and more adaptable streaming tech.
- Licensing Simplification: Larger catalogues under a single license simplify negotiations for multi-site businesses.
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