Why businesses need to pay for music use
Paying for the right music isn’t just an investment in your ambience, it’s an important legal obligation.
Benefit from playing the right music to enhance your atmosphere
Music sets the mood and creates a welcoming environment that makes customers feel comfortable and engaged, helping to create an impression that aligns with your brand.
Around 79% of customers notice background music. Research shows that well-curated music can directly affect the actions and spending habits of your customers. For example, studies have found that slow-tempo music playing in retail stores encourages customers to shop longer, which results in increased sales.
Strategic music choices can drive sales on a daily basis and improve the customer experience in the long run, resulting in repeat return visits. On the flip side, playing the wrong music can actually hurt your sales. One global restaurant chain saw a 4.3% drop in sales when playing random popular songs rather than no music at all. However, when playing music that aligned with the brand, such as a mix of hits and lesser-known tracks, sales jumped 9.1%, with dessert sales alone soaring 15.6%.
The right music can notably enhance the experience of your employees, boosting morale and productivity. Avoiding short, repetitive playlists that aren’t aligned with your brand ensures that staff will stay engaged and not feel driven to despair by a poor music selection.
The right music for your business depends on your business — for example, indie beats for a cozy boutique or retro tunes for a classic diner. Soundtrack helps connect you with the right music as well as the correct licenses for playing that music.
Respect the work of music creators by paying for their intellectual property
Business owners naturally expect their customers to pay for the products or services they provide; in turn, those businesses should easily recognize the need to pay music creators for the songs they play.
Music creators dedicate significant time, effort and money to creating quality music. A hefty budget is often required to cover production costs, studio time, marketing expenses and more. In fact, creating a full-length album can run anywhere from $10,000 to $100,000 in production costs alone. Hiring experienced professionals for art and design work can cost another $10,000, while music videos range anywhere from $2,000 to $50,000.
Paying for music ensures that creators can continue producing high-quality output. Licensing fees contribute to the music ecosystem, supporting not only recording artists but also musicians, producers, composers, songwriters and recording engineers.
For their part, customers are becoming increasingly aware of and attuned to companies’ ethical choices, and appreciate good business practices. The power to choose to spend with, and support, businesses that align with their values is in the hands of the consumer more than ever. So when a business pays for music, and consumers are made aware — Soundtrack users can proudly display their support with a music creators window sticker — it demonstrates support and respect for artists, which can foster goodwill and loyalty among customers.
Pay for the correct music licences to meet your legal obligations and avoid fines
Businesses of all sizes can face hefty fines and even legal action if caught playing unlicensed music. Copyright laws protect music creators by requiring businesses to purchase proper licenses for public performance, including recorded music as well as live performances.
There are many performance rights organizations (PROs) and collective management organizations (CMOs) around the world that manage music licensing on behalf of music creators. Businesses must secure the correct licenses from these organizations ahead of time in order to legally play copyrighted music.
Failing to purchase and maintain the proper music licenses can result in lawsuits and significant financial penalties. This can be incredibly costly and damaging to a business's reputation. The cost of music licences varies depending on factors like business size, industry and music usage. When the necessary music licenses are in place, businesses can create an inviting atmosphere for their customers and patrons while still respecting the work of music creators — and avoiding legal complications.
Use a suitable music service provider that’s approved for business
Personal music streaming services like Spotify, Apple Music, Deezer and Tidal are not approved for commercial use. The terms and conditions for these services state that their products are intended for personal use only. This means it’s not possible to use these services in your business, since they do not have the licenses necessary for streaming music in a commercial space. Doing so would be in breach of their T&Cs as well as music licensing regulations.
Soundtrack isn’t just licensed for business use, it’s also been created for it. With access to more than 100 million different songs, 1,800 curated playlists for business and an instant AI Playlist Creator, it’s easy to craft the perfect ambience — legally. The service is also packed with useful features made specifically for businesses, so your music process can run as smoothly as your customer service. Schedule playlists in advance, customize music for different areas, block explicit songs and more. Feel the value of an ad-free, legally compliant music experience that’s built to enhance your brand.