If you were to ask someone what platform they think of when they hear the words “music streaming,” there’s a high likelihood that they’ll say Spotify. It is, after all, one of the largest music streaming providers.
Founded in 2006 and launched in 2008, Spotify operates a freemium model and has become the world’s most popular audio streaming service. Spotify reportedly has more than 696 million monthly users, including 276 million paying subscribers, across over 180 markets.
In fact, Spotify is so popular that many people use it to play music in their businesses. While this may not seem like a big deal to some, streaming Spotify music in your business is actually against the law.
Why You Can’t Play Spotify in Your Business
Spotify’s terms of use clarify that it is intended for personal use only. This means that you can listen to it privately—in places like your home, your car, with a small gathering of friends, and essentially any small, private, and non-monetized setting. It is not authorized for business use.
What does the Law Say About Playing Spotify in Your Business?
Spotify’s terms of use explicitly state that the service is for personal, non-commercial use only. Commercial use, such as in retail stores, restaurants, offices, hotels, spas, or any public business space, requires special public performance licenses that a standard Spotify subscription doesn’t cover.
This restriction stems from global copyright laws, including the U.S. Copyright Act (17 U.S.C. § 106), Canada’s Copyright Act, and the EU Copyright Directive, which mandate that businesses obtain permissions from performance rights organizations (PROs) like ASCAP, BMI, SESAC, GMR in the U.S., SOCAN in Canada, and similar Collective Management Organizations (CMOs) worldwide. These laws ensure that artists, songwriters, composers, labels, and publishers are compensated for public performances.
Personal streaming apps like Spotify, Apple Music, Amazon Music, Tidal, Pandora, and YouTube Music only handle individual listening rights, not the broader commercial ones.
What Happens If You Get Caught Playing Spotify in Your Business?
The risks are significant. Copyright infringement can lead to hefty fines, starting from hundreds to thousands of dollars per violation, and escalating based on the infringement’s willfulness. In the U.S., statutory damages range from $750 to $30,000 per song, potentially up to $150,000 if deemed intentional, plus attorney fees (17 U.S.C. § 504).
There are numerous documented cases where bars, restaurants, and other businesses have been sued for using unlicensed music, with settlements often reaching tens of thousands of dollars. These cases underscore that paying for a personal streaming subscription like Spotify does not satisfy commercial licensing requirements and leaves businesses vulnerable to significant financial penalties.
Beyond fines, you could face cease-and-desist orders, legal battles, and reputational damage. PROs actively monitor businesses through tips, visits, and online reports, making compliance essential to avoid these pitfalls.
How Does Improper Use Hurt Artists and the Music Industry?
Beyond the legal risk, unauthorized streaming denies creators fair pay. Spotify’s per-stream payouts are already considered low, and commercial use magnifies the shortfall. Licensed business services pay more for public performance and channel that income back to artists, helping to fund new releases, tours, and careers. Properly licensed business plays can yield five to ten times more revenue for creators than personal streams, which is why the right licenses matter.
Many businesses unknowingly use Spotify on-site, costing the music industry and its artists an estimated $2 billion each year in lost royalties. This gap represents investment that never reaches the people who make the music.
What Businesses can Use Instead
So, if you can’t play Spotify in your business, you may be wondering, what can you play? Thankfully, there are services whose specific purpose is to provide fully licensed music to businesses. One such provider is known by many as Spotify for Business.
What is Spotify for Business?
This is where things get a little complicated. While people sometimes talk about Spotify for Business, it doesn’t actually exist. Spotify originally had interest in the business market but ended up dropping that to focus solely on their product for personal use. This means that you can’t rely on Spotify to handle your business needs—you’ll need to choose a different provider to play licensed music for you.
With this in mind, one of the best alternatives to “Spotify for Business” is SoundMachine, starting at only $26.95/month. SoundMachine makes it easy for businesses to keep using their favourite playlists by allowing direct imports from Spotify, Apple Music, Amazon Music, and more. This means that no matter where you’ve built your playlists, you can bring them with you and enjoy them in a fully licensed, business-safe environment.
Unlike personal streaming apps, SoundMachine is designed specifically for commercial use, providing not just licensing but also the tools you need to manage music across your business.
SoundMachine: Music for Business Made Easy
Importing playlists is just the beginning. SoundMachine also offers a range of powerful features that set it apart from many other music providers, including:
- 61 million licensed tracks and 500+ playlists and stations. This is a massive catalog that is larger than other providers.
- Licenses with a higher number of performance rights organizations, including SESAC and GMR. Many other music providers, including Soundtrack Your Brand, do not have agreements with these organizations, which means that you would not be able to play music from artists such as Bruno Mars (GMR), Drake (GMR), Adele (SESAC), and Green Day (SESAC). With SoundMachine, that isn’t a problem.
- Music scheduling and messaging included in all subscriptions.
- Compatibility with multiple audio systems, including, but not limited to, Sonos, Control4, BluOS, RTI Control, Autonomic, and more. However, a sound system is not required, and you can also play directly from the app.
- Plans starting from $26.95/month.
- A 30-day free trial.
Spotify for Business
While Spotify for Business may not actually exist, you can still use your Spotify playlists while benefiting from all the business-oriented features SoundMachine provides. With playlist importing, a massive catalog, and an affordable price, you’re sure to be satisfied with SoundMachine’s services.
Start your free trial today!