Spotify-backed commercial music streaming company, Soundtrack Your Brand, will get access to hundreds of thousands of potential new customers through a newly inked alliance with U.S. speaker manufacturer, Sonos Inc.
Soundtrack’s service will be available to as many as 300,000 businesses using Sonos speakers. The Swedish company could also channel more money to music companies and artists since commercial streaming commands a higher price than its consumer counterpart.
Store owners pay for a commercial music licence if they play songs in public, but rates often vary based on many factors. The growth of the music streaming market created an opportunity to simplify the system with flat-rate packages.
Soundtrack used Spotify ‘s catalog for its first 18 months of operations, but has since moved to build its own library of music. It now has 50 million songs after the company secured some 6,500 licensing deals with rights holders including Sony/ATV Music Publishing.
For Sonos, offering legal streaming music with its business-focused speaker setups could add a recurring revenue stream and help the company diversify from its main business of selling premium home speakers to consumers.
Soundtrack estimates that 21.3 million businesses worldwide aren’t paying for licensed music.