Music Licensing for Restaurants: Avoid a $30,000 Fine
Playing Spotify or a personal playlist in your restaurant without music licensing can cost you up to $30,000 per song. Here's what licenses you need and how much they cost.
Music Licensing for Restaurants: Avoid a $30,000 Fine
Music licensing for restaurants is one of the most misunderstood compliance issues in the industry. You have a great playlist. Your guests love the vibe. And somewhere, a performance rights organization is reviewing a list of unlicensed venues. Playing music in your restaurant without the right licenses — including streaming services like Spotify — can result in fines of up to $30,000 per song. Here's what you need to know.
Why Spotify and Apple Music Don't Cover You
This is the most common misconception. Spotify, Apple Music, Pandora, and similar services license music for personal use only. Playing them publicly in your restaurant violates the terms of service — and more importantly, violates copyright law.
When you play music publicly in a business, three separate rights are involved:
- The composition copyright (songwriters and publishers) — licensed by ASCAP, BMI, and SESAC
- The sound recording copyright (record labels) — licensed by SoundExchange or through direct licenses
- Sync rights (for live performances in some cases)
A standard Spotify subscription covers none of these commercial performance rights.
The Three Performing Rights Organizations (PROs)
In the United States, three PROs collectively represent virtually all commercially released music:
| PRO | Annual Restaurant Cost | Notable Artists |
|---|---|---|
| ASCAP | $250–$1,500/year | Taylor Swift, Bruno Mars, many pop |
| BMI | $250–$1,500/year | Country, hip-hop, rock catalogs |
| SESAC | $150–$500/year (by invitation) | Bob Dylan, Adele, Neil Diamond |
Most restaurants need ASCAP and BMI at minimum. SESAC is invite-only but worth checking if you play contemporary pop. Fees are based on your square footage, seating capacity, and music delivery method.
What Licenses Do You Actually Need?
For most independent restaurants:
Background music (streaming service or radio):
- ASCAP + BMI blanket licenses
- Total cost: typically $600–$2,500/year depending on size
Live music events:
- ASCAP + BMI + potentially SESAC
- Higher rates than background music
Television (sports bars, TVs with programming):
- Covered by your cable/satellite provider for the broadcast signal itself — but some content still requires separate licensing
DJ performances:
- The DJ may have their own licenses, but confirm in writing; venue liability doesn't automatically transfer
Legal Alternatives: Business Music Services
Several services provide music specifically licensed for commercial use, covering all necessary PRO rights in a single subscription:
- Soundtrack Your Brand — $35–$60/month
- Mood Media — $60–$120/month
- Cloud Cover Music — $25–$55/month
- Rockbot — $30–$70/month
These are not the cheapest option, but they're turnkey compliance — one subscription, fully licensed, no PRO paperwork.
What Happens If You Get Caught
PROs actively investigate unlicensed venues through field representatives, phone inquiries, and tips from members. The consequences:
- Cease and desist letter — first step, requires you to stop or license
- Civil lawsuit — statutory damages of $750–$30,000 per song under copyright law
- Willful infringement — damages up to $150,000 per song if the court finds deliberate violation
Settlements typically range from $10,000–$50,000 for small restaurants with extended unlicensed use. The math makes licensing look very cheap.
FAQ: Music Licensing for Restaurants
Do I need a music license if I just play the radio?
For over-the-air broadcast radio, the Radio Music License Committee (RMLC) provides an exemption under the Fairness in Music Licensing Act for establishments under 3,750 square feet with fewer than 6 speakers (or fewer than 4 per room). Many small restaurants qualify for this exemption — but confirm your specific situation with an attorney.
How much does music licensing cost for a restaurant?
For a typical independent restaurant using background music, budget $600–$2,500/year total for ASCAP and BMI licenses. Business music services like Soundtrack Your Brand or Cloud Cover Music cost $300–$700/year and include all necessary licensing.
Can I use YouTube for background music in my restaurant?
No. YouTube's terms of service restrict commercial use, and YouTube's licenses don't cover public performance rights. Playing YouTube in your restaurant is unlicensed and carries the same risks as Spotify.
What if a PRO representative comes to my restaurant?
Be polite, get their name and contact information, and do not admit to anything. Follow up with your attorney before responding. PRO representatives cannot enter private areas of your establishment without permission.
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