I have always thought of lounge music as something to be played in the background to enhance the ambience. Here is what wiki says:
Lounge music refers to music played in the lounges and bars of hotels and casinos, or at standalone piano bars. Generally, the performers include a singer and one or two other musicians. The performers play or cover songs composed by others, especially pop standards, many deriving from the days of Tin Pan Alley.
The term can also refer to laid-back electronic music, also named downtempo, because of the reputation of lounge music as low-key background music.
Full article:
http://en.wikipedia.org/wiki/Lounge_musicIn the recent times, many Indian musicians, especially artists of Indian origin staying in countries like UK & USA (termed "Asian Underground"), are trying their hands with lounge music. Some examples of such albums are:
Bar Bhangra (
http://click.linksynergy.com/fs-bin/stat?id=wJ5dnomNnUM&offerid=78941&type=3&subid=0&tmpid=1826&RD_PARM1=http%253A%252F%252Fphobos.apple.com%252FWebObjects%252FMZStore.woa%252Fwa%252FviewAlbum%253Fi%253D72409284%2526id%253D72409532%2526s%253D143441%2526partnerId%253D30)
Bollywood Lounge by Don Shiva (
http://click.linksynergy.com/fs-bin/stat?id=wJ5dnomNnUM&offerid=78941&type=3&subid=0&tmpid=1826&RD_PARM1=http%253A%252F%252Fphobos.apple.com%252FWebObjects%252FMZStore.woa%252Fwa%252FviewAlbum%253Fi%253D18207680%2526id%253D18207692%2526s%253D143441%2526partnerId%253D30)