April 18, 2024
Stock Music

Stock Music Market Is Adopting AI Trends To Power Creative Innovations

The stock music market provides invaluable licensing options for creators across industries through an extensive selection of royalty-free content. Comprising instrumental melodies, sound effects and loops, stock music libraries offer a cost-effective solution for scoring films, ads, games and more. With evolving consumption patterns and advanced music curation needs, stock music companies are increasingly leveraging artificial intelligence and machine learning technology to analyze vast audio catalogues and surface customized recommendations.

Stock music consists of pre-recorded songs, instrumentals and sound effects that creators can license for various media productions. Spanning diverse moods, genres and durations, stock music libraries offer an alternative to commissioning original scores. Popular in advertising, podcasts, YouTube videos and more due to affordable per project licensing, stock music saw global revenue of US$1515.32 billion in 2024. The market is driven by the expanding creative economy and growth of independent content. Facilitating quick turnarounds, stock music is instrumental in bringing ideas to life.

The global stock music is estimated to be valued at US$ 1515.32 Bn in 2024 and is expected to exhibit a CAGR of 9.5% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the stock music market are Littelfuse, Inc., RMCIP, Standex Electronics, Inc., Nippon Aleph, HSI Sensing, Inc., Coto Technology USA, PIT-RADWAR S.A., PIC GmbH, STG Germany GmbH, Harbin Electric Group, Zhejiang Xurui, Zippy Technology Corp., Honeywell International Inc., and Molex Incorporated. These companies curate extensive libraries, offer customized plans and are investing in AI to optimize music discovery and enhance customer experience.

Growing demand for Stock Music Market stems from the rapid expansion of the online video industry and surge in independent creators. As content production becomes more decentralized, affordable licensing of pre-existing content helps fuel creativity. Meanwhile, VR/AR developments are opening new immersive experiences requiring tailored audiovisual components.

The stock music market is witnessing significant global expansion, especially in emerging territories witnessing a boom in digital content and local language markets. Capitalizing on cross-cultural appeal, many libraries are diversifying playlists, adding translations and forging new distribution partnerships worldwide. Technology transfers are also simplifying international transactions and payments.

Market Key Trends

One of the major trends gaining momentum in the stock music market is the increased adoption of artificial intelligence. Players are developing sophisticated AI algorithms to analyze metadata, listens and customer profiles in order to deliver individualized playlist recommendations. AI tagging also improves search functionality and catalog navigation. Such advanced music curation capabilities using big data are expected to completely transform how creators discover content online over the coming years. This reflects stock music companies’ focus on innovating experiences to remain compelling among options like instantly viral social media tracks.

Porter’s Analysis

Threat of new entrants: Low barriers to entry as technology has made it easier for new music producers and libraries to enter the market. However, existing major players have significant resources and customer base which acts as deterrent.

Bargaining power of buyers: Buyers have moderate to high bargaining power as there are many producers and libraries offering stock music. Buyers can negotiate on price and switch between libraries.

Bargaining power of suppliers: Individual music producers and composers have low bargaining power as they depend on libraries for global distribution and marketing of their music. Libraries have higher power as suppliers.

Threat of new substitutes: Alternatives like custom music and producer libraries pose threat. However, ease of access and standard licenses of stock music libraries continue to make it an attractive option.

Competitive rivalry: Intense as major players compete on building large catalog sizes, offering different price tiers and custom solutions. Differentiation is through exclusive content and tech-enabled services.

Geographical regions of concentration

North America accounted for the largest share in the global stock music market in 2024 due to high media production and demand from advertising and broadcasting industries in the US and Canada.

Fastest growing region

Asia Pacific is expected to witness the highest CAGR during the forecast period. This is attributed to rising media industry and digital content creation in major markets of China, India and Southeast Asian countries. Increasing disposable incomes are also driving individual demand for licensed music.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.