When you walk into a shop, the music you hear isn’t just background noise. It sets the tone of the shopping experience, influences how long customers stay, and even shapes how they perceive your brand. But behind that carefully chosen playlist is a less glamorous reality: music licensing. For retail owners, understanding what a music license costs, and why it matters, is essential to running a compliant business.
Retail store background music is subject to copyright rules that are enforced by Performance Rights Organizations (PROs). These organizations represent songwriters, composers, and publishers, ensuring they’re compensated whenever their work is played in public. For retailers, this means that playing music without the proper licenses can result in fines or lawsuits.
Why Retail Stores Need a License to Play Music
In the United States, copyright law requires businesses to pay for the right to publicly perform music. Playing music in a shop, even if it’s from your own Spotify account, CDs, or the radio, counts as a public performance.
Every song is owned by multiple rights holders, and they’re often represented by different PROs. For example, one songwriter might be with ASCAP, another with BMI, while others are tied to SESAC or Global Music Rights. To play music legally, retail stores must cover all these bases.
Without a license, stores risk being targeted in audits by PROs, which can result in penalties ranging from hundreds to thousands of dollars per violation.
The Cost of Licensing Directly Through PROs
One of the biggest challenges for retailers is that there isn’t just one license that covers everything. Each PRO has its own catalog, its own rates, and its own rules.
Here’s what you might expect if you go directly to the source:
- ASCAP License Cost: License fees typically start around $390 per year. Costs increase based on factors like square footage and music usage.
- BMI License Cost: Licenses range from $250 to $2,000 per year, depending on your industry, the size of your store, and whether music is played live or recorded.
- SESAC: Unlike ASCAP and BMI, SESAC doesn’t publish its rates. Fees are negotiated directly and often land at a premium because the catalog is smaller but exclusive.
- GMR (Global Music Rights): Invitation-only and also negotiates fees directly. Like SESAC, costs are often higher due to the uniqueness of its represented artists.
Even conservative estimates put the combined annual costs for all four PROs at over $1,000, and that’s just for licensing. This doesn’t include the cost of a music service or equipment to actually play the music in your store.
How SoundMachine Bundles Licensing for Retailers
Instead of juggling separate agreements with four PROs, many retailers opt for a commercial music streaming service like SoundMachine.
With a single subscription, SoundMachine includes coverage for ASCAP, BMI, SESAC, and GMR. That means your store is legally licensed across the board, without having to negotiate with each PRO.
The cost? $323.40 per year (or $26.95 per month). Alongside the full licensing coverage, SoundMachine also provides:
- 61 million licensed tracks and 500+ playlists and stations. This is a massive catalog that is larger than other providers.
- Custom stations and curated playlists so you can either build your own unique sound or choose from premade stations tailored to retail moods.
- Scheduling tools that let you program music in advance for different times of the day.
- Built-in messaging system to advertise promotions or announcements at the right moments.
- Compatibility with audio systems including Bluesound, Control4, BluOS, RTI, Crestron, and Sonos.
- Multi-location and multi-user management, ideal for retail chains.
- Playlist imports from Apple Music, Spotify, and Amazon Music, a unique integration no other provider offers.
- Affordable plans starting at $26.95 per month, with a 30-day free trial so retailers can try it risk-free.
For most shops, that’s significantly less than paying each PRO separately, and it removes the headache of staying compliant on your own.
Why Location Matters for Licensing Costs
While this breakdown focuses on U.S. licensing, it’s important to note that rules vary globally. Different countries have their own PROs and regulations. For example, in the UK, businesses deal with PRS for Music and PPL, while in Canada, SOCAN handles licensing.
If your retail store operates internationally, or even if you’re in a border region with cross-traffic, your licensing obligations might differ. Always check local regulations before finalizing your setup.
Common Misconceptions About Retail Music Licensing
Many retail owners assume that if they’re paying for a consumer music service like Spotify or Apple Music, they’re covered. Unfortunately, those services are licensed only for personal, private use. Playing them in a commercial setting is against their terms and still leaves you legally exposed.
Another misconception is that radio stations are exempt. While it’s true that U.S. law has limited carve-outs for small businesses playing broadcast radio, the conditions are narrow, and most shops still fall under licensing obligations.
Final Takeaway: Cost-Effective, Compliant, and Convenient
Music is a powerful tool in retail, but licensing it can be complicated if you try to handle each PRO individually. Services like SoundMachine simplify the process by bundling all necessary licenses while also giving retailers tools to customize playlists, schedule music, and manage multiple locations with ease.
By using a bundled service, you protect your business from legal risks, gain access to one of the largest music catalogs available, and create a tailored ambiance that keeps customers coming back.
FAQs: Music Licensing for Retail Stores
Do I need a license if I only play the radio in my store?
It depends. If your shop is smaller than 2,000 square feet (or 3,750 square feet for restaurants) and you play standard broadcast radio, you may qualify for an exemption. However, if you use satellite, internet radio, or a streaming service, you’ll likely need a license.
What happens if I don’t get a license?
You risk receiving fines or lawsuits from PROs. Penalties often exceed the cost of simply getting licensed.
Can I just get one license to cover everything?
Not directly from PROs. Each one represents different artists, which means you’d normally need multiple agreements. In the U.S., services like SoundMachine simplify this by bundling ASCAP, BMI, SESAC, and GMR into a single affordable subscription. If your store is outside the U.S. or Canada, you’ll need to check with the local PROs (such as PRS for Music and PPL in the UK). Licensing rules vary by country, so a bundled service may not automatically cover international use.
Is background music really worth the cost?
Yes. Music sets the mood, improves the shopping experience, and can even encourage longer visits. Think of it as an investment in your store’s atmosphere and brand.Does my location affect what license I need?
Absolutely. U.S. stores deal with ASCAP, BMI, SESAC, and GMR. Stores in other countries must follow local PRO requirements.