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Exclusive: How background music can create recurring revenue  

Ola Sars, CEO of Soundtrack Your Brand, on monetising music within installations

As an installer in 2024, life is much bigger than cables and speakers. Customer needs are becoming more varied as technology evolves. Installation partners that can employ the latest and best in tech and who live and breathe connectivity will rise to the top. 

In today’s digital world, you can expect your customers to ask questions such as “What commercial TV or music streaming options are available?” and “What subscription options can or should be layered on top of the A/V tech to enhance capabilities?”  

Today, state-of-the-art music streaming solutions specifically designed for commercial spaces exist. And they offer the same flexibility one expects from a consumer streaming platform along with made-for-business controls that modern businesses require.

Some music streaming platforms now only require a network connection and RCA output, making installation straightforward. In some cases, installers can simply send setup instructions to a client directly to install. Many of these service providers now have iOS and Android apps that can be installed on tablets, smartphones, PCs and Macs. If your client doesn’t trust the cloud and prefers their hardware player, that can work too as accommodating platforms can either integrate via cloud or offer a dedicated hardware player. Either way, music can be controlled onsite, online, or remotely from an app. Today, premium APIs support building custom control interfaces.

From music scheduling to messaging, leading commercial music streaming services now offer controls for music curation and customisation to advanced scheduling, messaging, explicit lyric filters, distributed location and zone control and messaging. These essential features elevate how music is streamed in global business and commercial environments of all sizes.         

Consumer streaming services like Spotify, Apple Music and others are designed for just that – consumer use – and cannot legally be used in business settings. Professional AV and smart home professionals have the opportunity to impart important compliance information and ensure affordable licenses are obtained while eliminating the risk of copyright infringement. At the same time, they can support music and content creators so that they’re properly remunerated for their work.

When you hear “mailbox money,” your brain may think of owning a second home or multiple rental properties. But there’s a much easier way to generate supplementary cash flow via B2B music streaming. Select music streaming providers will pay you a fee when your customers sign up for their service. This usually results in receiving anywhere from 10%-20% of their subscription fee in commission.

IT consultants, particularly those in the hospitality and retail spaces, provide a glimpse into the future of AV installation offerings. They collaborate with various software services to enhance their offerings, and a significant portion of their profit comes from recurring revenue streams rather than single installation invoices. 

Looking ahead, this shift will reshape the sales funnel from distributors down to installers to balance between immediate and recurring profits to optimise customer lifetime value. Those who become experts at using software in their installations to optimize both customer satisfaction and managing installations remotely will ultimately scale their business effectively. Within music, 75% of businesses still rely on consumer music services. For installers ready to immerse themselves in this realm, the path to recurring income awaits.