December 4th, 2015

Play on: Music is the Food of Business

Quantitative survey results

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Key Findings

• Music has a very strong impact on Canadians’ experience of restaurants as well as grocery and retail stores Majority of Canadians say they are likely to enjoy their food and drink more and stay in a restaurant longer when

they hear music in a restaurant or see live music. More than half say hearing music in a grocery store makes their experience more enjoyable. More than half say they enjoy their shopping experience more when they hear music at a retail store. More than 2/3 of Canadians say the atmosphere created by music impacts their decision to return to or recommend

a restaurant to others. More than ¼ say they would have a negative reaction if they were in a restaurant with no music. Businesses with a music license agree music creates a more positive experience for their customers and impact

perceptions of their businesses. Those who have live music agree it creates a more festive atmosphere for their customers.

• Canadians like to hear a variety of music types when eating in a bar or restaurant or shopping in a retail or grocery store; Close to half say they like to hear a mix of everything in restaurants. Close to half like a mix of styles when it comes to grocery stores. More than half say they like to hear a mix of everything when shopping in retail stores. Two-thirds of business licensed to play with SOCAN say their customers like to hear a mix of everything.

• The kind of impact that music has on Canadians differs with age; Older Canadians are more likely to say they prefer restaurants or retail / grocery stores with no music. Younger Canadians are more likely to agree they have gone to a bar /restaurant for the music they play. Millennials (aged 18-34) are more likely to say they would have a negative reaction to being in a restaurant without

music.

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Hearing Music in a Restaurant

Q1. When hearing music you enjoy in a restaurant, how likely are you to do each of the following. Q2. When hearing live music you enjoy in a restaurant,how likely are you to do each of the following: Base: All respondents (n=1500)

% Very/somewhat likely to do the following when hearing music in a restaurant:

78%

70%

44%

36%

24%

75%

75%

57%

50%

35%

Hearing music

Hearing live music

The majority of Canadians say hearing music and seeing live music in a restaurant makes them more likely to enjoy their food and drink (78% and 75%) as well as stay in a restaurant longer (70% and 75%).

Half of Canadians also say live music makes them likely to eat or drink more (50%), while over half say it makes them likely to invite their friends to join them (57%).

As Canadians age a smaller percentage indicate that music is likely to make them stay longer in a restaurant.Not surprisingly a higher percentage of those aged 18-54 are more likely to say music in a restaurant makes them more likely to share their opinion on social media compared to those aged 55 and over (29% vs. 16%).

Enjoy your food/drink more

Stay in the restaurant longer

Invite your friends to join you at the restaurant

Want to eat and drink more

Share your opinion or experience on social media

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Feelings Created by Lack of Music

Q3. If you were at a restaurant without music, which of the following, if any, would you feel? [Check all that apply] Base: All respondents / thosewho would have a negative reaction to a restaurant without music (n=1500/377)

28%Report they would have a negative reaction if

they were at a restaurant without music, among these……

51%

43%

30%

20%

17%

9%

Awkward

Unlikely to return

Confused

The need to leave

Anxious

Sad

While many Canadians (49%) say they would be feel indifferent about being at a restaurant without music, 28% say they would have a negative reaction to being in a restaurant without music.

Millennials are more likely (47%) compared to other age groups to report having a negative reaction to being in a restaurant without music.

Among those who say their reaction would be negative; awkward (51%) and unlikely to return (43%) are the most common.

47%32%

24%16% 11%

Age:

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Types of Music Most Liked in Restaurants

Q4. Which of the following types of music, if any, do you like to hear while eating at a restaurant? Base: All respondents (n=1500)

Which of the following types of music do you like to hear while eating in a restaurant?

43%

28%

12%

12%

7%

12%

A mix of everything

Jazz/Blues

Rock

Pop

R&B/Hip-Hop

I prefer restaurants with no music

Don’t know/prefer not to answer: 4%

Canadians like to hear a number of music styles when eating in a restaurant.

43% say they prefer to hear a mix of everything while 28% say they prefer to hear jazz / blues.

12% say they prefer no music at all. Those aged 65 and over are more likely to say they prefer restaurants with no music at all (33%) compared to other age groups (9%).

Any: 84%

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Factors Influencing Return to a Restaurant

Q5. To what extent do you agree or disagree that each of the following impact your decision to return to or recommend a restaurant? Base: All respondents (n=1500)

Quality of food and drink

Price of food and drink service

Service

Location

Restaurant Décor

Atmosphere created by music

To what extent do the following impact your decision to return to or recommend a restaurant?

% who somewhat / strongly agree

More than 2/3 of Canadians (68%) agree the atmosphere created by music impacts their decision to return to or recommend a restaurant.

99%

97%

97%

87%

73%

68%

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Music in Restaurants

Q6. To what extent do you agree or disagree with each of the following statements: Base: All respondents (n=1500)

To what extent do you agree with the following statements?

% somewhat / strongly agree

Most Canadians agree (76%) that restaurants who match their menu to the music they play seem more authentic.

76%

34%

Restaurants that play music matching theirmenu seem more authentic than those that

do not

I have gone to a restaurant/bar because ofthe music they play.

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Music in Restaurants

Q6. To what extent do you agree or disagree with each of the following statements: Base: All respondents (n=1500)

To what extent do you agree with the following statements?

% somewhat / strongly agree

More than 1/3 (38%) of Canadians agree knowledge of whether a restaurant is paying their legal and fair license fee for the music they play would impact their decision to go there.

34% 32%

If I knew a restaurant was paying its legal andfair license fee for the music they play, it would

affect my decision to go there.

If I knew a restaurant was not paying its legaland fair license fee for the music they play, it

would affect my decision to go there.

Net: 38%

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Music Type While Grocery Shopping

Q7. Which of the following types of music, if any, do you like to hear while grocery shopping? Base: All respondents (n=1500)

Which of the following types of music do you like to hear while grocery shopping?

49%

17%

10%

9%

6%

19%

A mix of everything

Pop

Rock

Jazz/Blues

R&B/Hip-Hop

I prefer grocery stores with no music

Don’t know/prefer not to answer: 4%

Any: 77%

Like in restaurants, Canadians like to hear a number of music styles when shopping for groceries.

About half (49%) say they prefer to hear a mix of everything while 17% say they prefer to hear pop music.

19% say they prefer no music at all. Those aged 55-64 (22%) and those aged 65 and over (42%) are more likely to say they like no music at all compared to those aged 18-54 (13%).

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Hearing Music in a Grocery Store

Q8. When hearing music you enjoy in a grocery store, how likely are you to do each of the following Base: All respondents (n=1500)

Those very/somewhat likely to do the following when hearing music in the grocery store:

58%

34%

33%

28%

24%

More than half of Canadians (58%) say they are likely to enjoy their shopping experience more when they hear music in the grocery store.

Enjoy your shopping experience more

Dance or sing in the aisle

Stay until the song you were enjoying finished

Slow down when you’re shopping

Stay in the grocery store longer overall

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Music at a Retail Store

Q9. Which of the following types of music, if any, do you like to hear while at a retail store? [Check all that apply]Base: All respondents (n=1500)

Which of the following types of music do you like to hear while at a retail store?

52%

16%

11%

10%

7%

15%

A mix of everything

Pop

Rock

Jazz/Blues

R&B/Hip-Hop

I prefer stores with no music

Don’t know/prefer not to answer: 4%

Any: 81%

Like in restaurants and grocery stores, Canadians like to hear a number of music styles when shopping in retail stores.

About half (52%) say they prefer to hear a mix of everything while they shop and 16% say they prefer to hear pop music.

15% say they prefer no music at all. Those aged 55-64 (18%) and those aged 65 and over (37%) are more likely to say they like no music at all compared to those aged 18-54 (9%).

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Hearing Music in a Retail Store

Q10. When hearing music you enjoy in a retail store, how likely are you to do each of the following Base: All respondents (n=1500)

Those very/somewhat likely to do the following when hearing music in retail store:

57%

35%

34%

32%

31%

25%

More than half of Canadians (57%) say they are likely to enjoy their shopping experience more when they hear music in a retail store.

Enjoy your shopping experience more

Stay until the song you were enjoying finished

Slow down when you’re shopping

Stay in the store longer overall

Dance or sing in the aisle

Inquire about the music being played

Businesses with a Music License

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Type of Business

Q1. Which type of business do you operate? Base: All business owners/licensees (n=270)

Which type of business do you operate?

42%

31%

12%

2%

11%

Bar/restaurant

Hospitality Services

Retail Store

Grocery Store

Other*

Nearly half (42%) of those businesses licensed to play with SOCAN surveyed were bar / restaurant owners, while just under two-thirds (31%) were in the hospitality industry.

Don’t know/prefer not to answer: 2%

*Other includes: automotive dealership, art gallery, non-profit, spa/massage therapy

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Music in Businesses

Q2. To the best of your knowledge, which genre of music do think your customers most enjoy hearing? Base: All business owners/licensees (n=270)

Which genre of music do your customers enjoy hearing most?

Mirroring what Canadians say about what they like to hear, two-thirds of businesses with a music license surveyed say their customers enjoy hearing a mix of everything.

66%

10%

7%

5%

2%

3%

A mix of everything

Jazz/Blues

Pop

Rock

R&B/Hip-Hop

They don’t want to hear music

Don’t know/prefer not to answer: 6%

Any: 90%

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Q3. To what extent do you agree or disagree with each of the following statements, Base: All business owners/licensees (n=270)

Music in Businesses

To what extent do you agree with the following statements?

84%

63%

59%

55%

53%

42%

When I play music customers like, I believe this helps create a more positive experience.

When I play music customers like, they stay in my store or restaurant longer.

The music I play impacts whether or not customers stay in my store or restaurant.

The music I play impacts whether or not customers will return to my store or restaurant.

Customers have commented to me about the music I play in my store or restaurant.

When I play music customers like, they spend more money in my store or restaurant.

A large majority of surveyed Businesses licensed to play with SOCAN (84%) agree that music creates a more positive experience for their customers.

More than half also agree that the music they play impacts whether (59%)and how long customers stay (63%), as well as if they return to their store or bar/restaurant (55%).

More than half also agree that customers have commented on the music they play in their store (53%).

57%Yes

41%No

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Q4. Do you ever have live music in your place of business? Base: All business owners/licensees (n=270)

More than half (57%) of surveyed Businesses licensed to play with SOCAN said they at least sometimes, have live music at their place of business.

Those in the Atlantic provinces are more likely to indicate that they have live music in their place of business when compared to other Canadian provinces.

Music in Businesses

Do you ever have live music in your place of business?

Don’t know/prefer not to answer: 2%

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Q5. To what extent do you agree or disagree with each of the following statements, Base: Those who have live music in their place of business (n=153)

Among those who have live music in their business, nearly nine out of ten (88%) agree that live music creates a more festive atmosphere. A large proportion also agree (73%) that they feel good about employing live musicians.

More than half also agree that live music attracts more customers to their business (67%) and gives them an edge over their competition (59%).

Live Music in Businesses

To what extent to you agree or disagree with the following statements?

% somewhat /strongly agree

88%

73%

67%

59%

Live music creates a more festive atmosphere

I feel good about employing live musicians

Having live music attracts more customers

Having live music gives us an edge over our competition

Methodology

INSTRUMENT

A survey of 1500 Canadians was completed online

between November 6th to November 22nd, 2015 using

Leger’s online panel, LegerWeb.

In addition to the Canadian public sample an additional

online survey of 270 businesses with a music license

with SOCAN was completed between Nov. 8th and

Nov. 27th.

Surveys were distributed to licensees via SOCAN

ONLINE PANEL

Leger’s online panel has approximately 475,000

members nationally – with between 10,000 and 20,000

new members added each month, and has a retention

rate of 90%.

Panel members are randomly selected to receive email

invitations to the individual surveys.

We ensure the protection of privacy via the usage of

unique URLs and respondent IDs in combination with

survey IDs.

QUALITY CONTROL

Stringent quality assurance measures allow Leger to

achieve the high-quality standards set by the company.

As a result, its methods of data collection and storage

outperform the norms set by WAPOR (The World

Association for Public Opinion Research). These

measures are applied at every stage of the project:

from data collection to processing, through to analysis.

We aim to answer our clients’ needs with honesty, total

confidentiality, and integrity.

For the general population sample, a probability

sample of the same size would yield a margin of error

of +/- 2.5%, 19 times out of 20.

While a probability sample among businesses with

licenses to play with SOCAN would yield a margin of

error of +/- 5.8%, 19 times out of 20.

www.leger360.com

Amal YassirSOCANCommunications & Marketing SpecialistO: 416-445-8700 ex. 3747yassira@socan.ca

Lisa CovensVice-PresidentCommunications and Public AffairsO: 416-964-4107lcovens@leger360.com

Jessie RobertsonSenior ConsultantCommunications and Public AffairsO: 416-967-4548jrobertson@leger360.com