How to legally play music in business
As a business owner, you inevitably will have to deal with copyright law. Do you turn on Spotify in your shop? Or play a YouTube compilation of jazz classics to create a welcoming ambiance for guests of your cafe? If this is the case, you should consider music licensing for business. This guide helps you reveal how you can legally meet the music needs of your business.
- How does music licensing work
- What do music performance rights organizations do?
- How to legally play music in your business
- How much does a business music license cost?
- Licensed music on Moodby Play
How does music licensing work
Every song you hear has a team behind it—songwriters, composers, performers, and publishers—all of whom deserve to be paid for their work. Copyright law ensures they have control over how their creations are used. The moment a track is recorded, it’s automatically protected as copyrighted music.
When it comes to music usage, there are two main categories: personal and business. Listening through your earphones? No problem. But the moment your playlist plays through speakers in a public space, it may qualify as a public performance—meaning businesses need proper licensing to avoid copyright infringement.
Music licensing grants businesses legal permission to use tracks for specific purposes, like setting the right ambiance in a hotel lobby. Commercial music licenses cover streaming in public venues, and failure to comply can result in legal fines.
With millions of copyrighted songs worldwide, organizations exist to monitor and manage their usage. This is where performance rights organizations step in, ensuring fair compensation for the music industry while helping businesses stay compliant.
What do music performance rights organizations do?
Performance Rights Organizations (PROs) and Collective Management Organizations (CMOs) serve as intermediaries between rights holders and businesses, granting licenses for legal music use in public spaces.
These organizations collaborate with publishers, artists, and labels, managing their music catalogs either fully or partially. This allows a single organization to represent a vast range of music companies under its umbrella.
CMOs primarily focus on licensing music for commercial use, collecting fees, and distributing royalties to the industry’s stakeholders. Beyond licensing, they also enforce copyright law, taking legal action against businesses that play copyrighted music without proper authorization.
How to legally play music in your business
There are two legal ways to stream background music in your business:
- Create your own original music and become a copyright holder yourself.
- Obtain a license for tracks created by others.
But what about royalty-free music? It’s a fair question. While using non-copyrighted music means you don’t need a license, it doesn’t always mean it’s free—you typically pay for access to royalty-free catalogs.
And classical music? Beethoven won’t sue you, but the orchestra, publisher, or label behind a recording of his work still holds rights—and they can.
How much does a business music license cost?
The cost of a music license varies by performance rights society, but several key factors influence pricing:
- Type of business – Different industries, like beauty salons or retail stores, may have specific tariffs.
- Usage – Whether you’re playing recorded tracks or live performances affects licensing fees.
- Venue size – A small café pays less than a large hotel chain.
- Number of employees – Relevant if streaming music in an office.
- Playback devices – Fees may differ based on whether you use TVs, audio systems, or other equipment.
For exact pricing in your region, contact your local CMO.
Licensed music on Moodby Play
If you want to stream copyrighted music, consider Moodby Play. We provide high-quality royalty-free music for restaurants, cafes, hotels, pubs, and other venues. Discover an extensive library of music stations with popular genres and moods curated by local experts. Try for free!
