What's Happening?
Soundtrack Technologies, a music streaming service tailored for businesses, has announced the acquisition of two rival companies, Tunify and Ambie. This strategic move is aimed at expanding Soundtrack's international presence and consolidating its position in the market for licensed music services to businesses. Soundtrack Technologies, which was founded in 2013 as a joint venture between Spotify and CEO Ola Sars, serves 100,000 business subscribers across 75 countries. The company provides a vast library of 125 million tracks through direct licensing agreements, catering to various establishments such as stores, hotels, and coffee shops. The acquisition of Tunify, popular in Belgium and the Netherlands, and Ambie, favored in the U.K., is part
of Soundtrack's strategy to integrate regional operators and enhance its service offerings.
Why It's Important?
The acquisition of Tunify and Ambie by Soundtrack Technologies is significant as it highlights the growing demand for licensed music services in business environments. The market for such services is estimated to be worth up to $40 billion, indicating substantial growth potential. By expanding its reach and integrating regional players, Soundtrack Technologies is positioning itself as a leader in this fragmented market. This move not only strengthens its customer base but also allows the company to tap into the cultural and musical preferences of different regions, enhancing its service offerings. Businesses that rely on music to enhance customer experience, such as retail stores and hotels, stand to benefit from the expanded and diversified music library and services provided by Soundtrack Technologies.
What's Next?
Following the acquisition, Soundtrack Technologies plans to integrate the customer bases of Tunify and Ambie into its existing platform. This integration will enable customers of these companies, including major hotel chains like Hyatt and Hilton, to access Soundtrack's AI playlist generator and other advanced services. The company is likely to continue its expansion efforts, potentially targeting other regional players to further consolidate its market position. As Soundtrack Technologies grows, it may also explore new partnerships and collaborations to enhance its service offerings and cater to a broader range of business needs.
