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How Much Is a Music License for a Small Shop?

By Editor, 2025-07-07

Whenever you have entered a boutique or a coffee shop playing background music, you have experienced how music transforms a retail environment. From creating the right mood to enhancing customer dwell time, music is a great business tool. But did you know that playing music in a commercial setting needs to be licensed?

However, it is not as simple as playing your favorite playlist when it comes to playing music in your retail store. Even playing music via speakers, a radio, or even a streaming app in your shop falls under the category of public performance, which implies that you have to get the rights holder’s permission. Without the right music license, commercial use of music may attract a penalty or legal prosecution.

This blog will take you through all you need to know about the legal use of music in business, from music license costs for retail shops to knowledge of various licensing organizations in the UK and the USA. Whether you run a chic boutique or a cozy coffee shop, this guide will help you to be not only legal but also musically sorted.


Do Small Shops Need a Music License?

Brief answer: Yes, practically in each country.

A music license is required by you if your business entertains with music in any of the public places, whether through speakers, live bands, disc jockeys, or even TVs showing music videos. This is applicable throughout industries, whether it is hair salons, yoga studios, cafes, or boutiques.

Why? Because music creators and performers own public performance rights. It violates their rights to play their work in a business without their permission, even though you may have legally bought the music for personal use.

Examples of Affected Businesses:

  • Coffee shops playing jazz playlists
  • Spas using instrumental background music
  • Retail stores that play popular hits

Even small-scale businesses may find themselves on the wrong side of the law in the absence of the appropriate music licensing requirements for small retail businesses. A license is always required unless proven otherwise.


How Much Is a Music License for a Small Shop?

The cost to legally play music in a business depends on factors like your location, store size, type of music usage, and whether the music is recorded or live. The snapshot below shows the music license cost for retail shops in popular areas:

Country by Music Performing Rights Organization (PRO) by Typical Annual Cost for Small Retailers
CountryLicense ProviderTypical Annual Cost (Small Shops)
UKPRS + PPL£150 – £300 combined
USAASCAP / BMI$250 – $500 per PRO
AUSOneMusic AustraliaAUD 200 – $400
CanadaSOCAN, Re:SoundCAD 200 – $400
   

Key Factors Affecting Cost:

  • Square footage: The bigger stores will pay more.
  • Music: Live bands, DJs, or canned music sets will incur an extra charge.
  • Number of Locations: The more the branches, the more the licenses.
  • Opening hours: Long opening hours can raise the charges.
  • Customer capacity: Larger capacity establishments will pay higher.
  • Music usage: Background vs. featured entertainment

For example, a 500 sq. ft. shop in the UK can expect to pay approximately £250/year in combined PRS music license cost and PPL license pricing to play background radio or playlists.

Pro tip: When asking questions like how much to play music in a store, it is always good to consult the relevant licensing organization to get the latest rates.


Top Music Licensing Companies and Services

So, let us examine the most typical providers:

Music Licensing Body or Streaming Service/Licensor Bundler by Country and License Scope
Licensing BodyCountryCoverage
PRS for MusicUKComposers and publishers
PPLUKPerformers and labels
ASCAPUSAComposers and publishers
BMIUSASongwriters, composers, and publishers
SESACUSAInvitation-only, exclusive artists
SOCAN / Re:SoundCanadaSimilar to PRS/PPL
Cloud Cover MusicUSAAll-in-one licensing + music delivery
   

Contemporary substitutions comprise commercial providers of music rights, such as

  • Soundstripe: $20-$83/month for commercial use
  • Epidemic Sound: $17-$30/month for business licensing
  • Audio Jungle: Pay-per-track commercial licensing

These services offer pre-cleared music libraries, eliminating the need for multiple organization licenses while offering cost-effective solutions to play music in a business legally, which are often more affordable for small operations.


Royalty-Free Music vs. Licensed Music

Royalty-free music implies that you pay a one-time price, and then you are not obliged to continue paying any more royalties. Licensed music, however, contains mainstream songs, and periodic payments have to be made to the licensing organizations.

Royalty-Free vs. Licensed Music Pros and Cons
TypeProsCons
Royalty-FreeCost-effective, simpleNo popular songs
Licensed MusicPopular, recognizable tracksOngoing fees, legal risk if unlicensed
   

If you want something smarter and stress-free, Practical Stream  is an excellent choice. It provides professionally curated playlists ready to use in business—all commercial licenses are included. No lawyer headaches, no additional steps, just plug and play, and let your shop sound great and be completely compliant.


Music Licensing Platforms for Small Businesses

The following platforms assist you in getting both music and licensing in a single package:

Music Streaming Service/Licensor Platform by Fee and Venue Suitability
PlatformBest ForCost Estimate
Cloud Cover MusicRetail, gyms, cafesFrom $16.16/month
Soundtrack Your BrandSpotify-like experience$34/month
RockbotMulti-location retailersCustom pricing
Mood MediaChain businessesVaries by plan
Practical Stream All business typesFlexible, budget-friendly plans
   

With these platforms, your shop background music license cost includes both music access and legal coverage.


Music Clearance and Compliance Tips

Music clearance is the process of having legal permission to play a track publicly. This is how to keep legal music use in business:

  • Document everything: Keep records of all licenses and payments.
  • Understand your coverage: Know exactly what each license covers.
  • Regular audits: Periodically review your music usage and licensing needs.
  • Stay informed: Copyright laws and rates change periodically.
  • Seek professional help: Consider consulting with entertainment lawyers for complex situations.

FAQs About Music Licensing for Small Shops

  1. Can I use Spotify in my store?

    No, the standard Spotify subscriptions do not provide a public performance licence to shops.

  2. What happens when I play music without a license?

    Licensing authorities can issue fines, backdated fees, and legal notices.

  3. Is one license enough if I have multiple stores?

    Each location typically requires separate licensing, though some organizations offer multi-location discounts for commercial music license cost calculations.

  4. Do I need different licenses for different types of music?

    It depends on your music sources. Comprehensive PRO licenses cover most scenarios, but specific situations may require additional clearances.

Final Thoughts

Obtaining the appropriate music license does not need to be difficult. With Practical Stream  playing licensed music in your shop is simple, legal, and hassle-free — just press play and set the mood.


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