Why do businesses need a public performance license for music?

Copyright law requires businesses to obtain a license when playing music publicly to ensure songwriters and publishers are compensated and to protect venues from legal risks. This applies to cafes, gyms, retail shops, and other public spaces.

What organizations manage public performance licenses in the U.S.?

In the U.S., public performance licenses are managed by Performing Rights Organizations (PROs) such as ASCAP, BMI, and SESAC. Each PRO represents a different catalog, so multiple licenses may be required.

How can businesses obtain the right music license?

Businesses should identify their intended music use (background playlists, live bands, streamed music), contact relevant PROs for quotes based on venue size and audience, and choose a site license covering all songs in a PRO’s catalog for a flat annual fee.

Can I use personal streaming accounts for public music?

No. Even legally paid personal streaming accounts cannot be used for public performances. Proper licensing is mandatory whether music plays through speakers, TVs, or live acts.

How does the type of venue affect music license costs?

License costs depend on venue size, occupancy, performance type (live or recorded), frequency of music use, venue category, and number of speakers or locations. Larger or multi-zone venues typically incur higher fees.

What are typical annual public performance license costs?

Estimated costs vary by venue: Small café or boutique: $300–$500/year (€280–€470/year), Medium restaurant or bar: $500–$2,000/year (€470–€1,880/year), Gym or retail store: $400–$1,500/year (€375–€1,410/year), Nightclub or concert venue: $3,000–$9,000+/year (€2,820–€8,460+/year), Hotel with multiple zones: $2,000–$6,000/year (€1,880–€5,640/year).

What practical steps should business owners take regarding music licensing?

Owners should audit their music usage, keep logs of frequency and type of performances, renew licenses on time, and inquire about exemptions for very small venues or private performances.

Why is securing a music license beneficial for businesses?

A music license ensures compliance with copyright law, compensates creators fairly, avoids legal penalties, and allows businesses to enhance their space with music, creating a vibrant and enjoyable environment for customers.

September 4, 2025

7 min read

Navigating the World of Music Licensing

Person typing on an open laptop with sheet music and silver headphones on the table.

Playing music in a public space—whether it’s a café, gym, or retail shop—lifts the atmosphere instantly. But using copyrighted tunes without permission can land businesses in hot water. Understanding the public performance license is the first step toward adding joy to your space while staying on the right side of the law.

Why Playing Music Publicly Requires Permission
How to Obtain the Right Music Permission
Licensing in Different Scenarios
Factors That Influence License Cost
Quick Overview: Licensing Essentials
Practical Advice for Business Owners

Why Playing Music Publicly Requires Permission

Copyright law grants creators control over how their work is used. When a business plays music for customers, that’s no longer a private moment—it’s a performance that needs authorization. A public performance license ensures songwriters and publishers get their fair share, and it protects venues from legal risks.

In the U.S., these licenses are managed by Performing Rights Organizations (PROs) like ASCAP, BMI, and SESAC. Each handles a different catalog, meaning venues often need multiple licenses to cover the full range of music being played.

How to Obtain the Right Music Permission

Determining how to get a license for music use in your venue is simpler than it sounds, as long as you know where to start:

Identify your intended music use — background playlists, live bands, streamed tunes, etc.
Contact relevant PROs and request quotes—often based on venue size, type of use, and audience capacity.
Choose site license to cover all songs in a PRO’s catalog for a flat annual fee.

The public performance license cost depends on multiple variables. Factors such as square footage, number of patrons, genre of music, and performance type all influence pricing. This approach simplifies compliance and protects against unexpected fines.

Licensing in Different Scenarios

Some businesses wonder if they can bypass licensing by using streaming services. Unfortunately, even legally paid personal accounts aren’t valid for public use. A proper music license is mandatory whether music plays on speakers, TVs, or via live acts.

Here’s how a license to play music in public varies by context:

Background ambiance in a retail space — typically requires a standard PRO license.
Weekly live music nights or DJs — often requires an enhanced or additional performance license.
Special one-off events like film screenings — may need both music and synchronization rights, depending on the content.

Factors That Influence License Cost

The cost of a public performance license is highly individualized. Performing Rights Organizations (PROs) use a tiered system to calculate fees, ensuring that the cost is proportionate to the value of the music being used. Here are the key factors:

Venue Size and Occupancy: A larger venue with higher seating capacity or square footage has a greater potential audience. A 50-seat café will pay a much lower fee than a 500-seat restaurant or a stadium. Public performance license cost often scale based on these measurements, and performance rights organizations (PROs) typically offer tiered pricing structures.
Performance Type: Whether the music is live, recorded (e.g., streaming, CD, jukebox), or a mix of both affects the cost. Live performances by a band or DJ usually incur higher fees. If music is used for both background ambience and special events, the public performance license will reflect this broader usage.
Frequency of Music Use: A business that plays music daily will pay more than one that uses it occasionally. This is especially relevant for background music in commercial spaces, where continuous playback is common.
Venue Type: PROs have specific rate cards for different business categories. A license to play music in public, for example, differs from that of a nightclub, hotel, or gym due to variations in audience size and music usage.
Number of Speakers/Locations: The number of speakers, especially in retail environments, can influence pricing. Businesses with multiple branches may benefit from a blanket license, which covers all locations under one agreement but is calculated per site.

Quick Overview: Licensing Essentials

Keep in mind that these are general estimates. The final price can vary based on the specific factors above and the PRO’s current rate schedule.

Venue Type	USD Estimate	EUR Estimate	Notes
Small café or boutique	$300–$500/year	€280–€470/year	Background music only
Medium restaurant or bar	$500–$2,000/year	€470–€1,880/year	May include live music
Gym or retail store	$400–$1,500/year	€375–€1,410/year	Based on square footage
Nightclub or concert venue	$3,000–$9,000+/year	€2,820–€8,460+/year	High occupancy, frequent live shows
Hotel with multiple zones	$2,000–$6,000/year	€1,880–€5,640/year	Includes lobby, bar, spa, etc.

The total cost can be higher, as you will likely need a public performance license from multiple PROs (ASCAP, BMI, and SESAC) to cover a comprehensive music catalog.

Practical Advice for Business Owners

Audit your music use before contacting PROs — clarity leads to fairer pricing.
Keep track of usage volume (e.g. frequency of live sessions) through simple logs.
Renew on time. Licensing is typically annual, and lapses can reopen legal risks.
Ask for exemptions—some very small venues or private performances might be eligible for statutory exemptions.

Music enriches spaces, brings memories, and connects people. Securing a performance license helps ensure creators are honored and venues stay vibrant, protected, and tuned in to both compliance and community.