When music costs come up in hospitality, the conversation often stalls in the wrong place.
“How much is the service?” “How much is the license?”
Wrong questions. The right question is: What does a complete, legal, stable solution cost—across the entire year?
Answering that requires understanding the cost structure.
Two separate layers
Music in hospitality has two costs. They’re often confused. But they’re separate.
Layer 1: Licensing
Performing rights organizations regulate the right to publicly play music. This is a legal requirement. Every space that plays music publicly must have a license agreement.
Cost depends on space size, type of establishment, and playback method.
Annual license
Annual license
Annual license
Layer 2: Music source
The source is what actually plays the music—radio, CD, streaming, professional service.
This is where the biggest difference in cost and risk emerges.
The “cheap” scenario and its real price
The most common approach: “We have Spotify, we pay the license, done.”
On paper it looks simple:
Monthly
Depends on space
On paper
In practice:
The real cost of this scenario isn’t $10 per month. The real cost includes risk that can materialize at any moment.
“Cheap” becomes “expensive” the moment an inspector walks through the door.
The structure of legitimate cost
For a fully legal and stable solution, cost consists of:
1. License — legal requirement, fixed annual fee
Annually
Annually
Annually
2. Music source — professional service designed for commercial use
Depending on service type and needs, this ranges from $20-50 per month for simple solutions, to more for complex multi-zone systems.
For most spaces
Professional service
Total annual cost
Total annually (license + source)
Total annually (license + source)
Putting cost in perspective
For a restaurant operating 300 days per year, an annual music cost of $600 means $2 per day.
For professional music
Less than one coffee
Less than one meal
Less than one hour of labor
The question isn’t “is this a cost.” The question is “what alternative does this cost replace.”
What’s often forgotten in the calculation
“Cheap” solutions have hidden costs that don’t show up on the invoice.
Staff time
Someone has to manage the music. Choose playlists. Fix problems. That time has a price — even if it doesn’t appear as a line item.
Seasonal adjustments
The playlist that worked in spring might not work in summer. Someone has to adapt it. Again — time.
Inspection stress
A space that isn’t confident in its legal status — that creates tension. Maybe it never materializes. But it exists as constant background worry.
Space changes
You added a terrace. Renovated the lounge. Opened a wellness area. Every change requires adaptation — of both music and license.
These costs aren’t in the budget. But they’re real.
How professional spaces view cost
Hospitality operators who’ve been in business a long time rarely ask: “What’s cheapest?”
They more often ask: “How do I make this stop being an issue?”
For them, music is:
- Part of the experience they offer guests
- Part of the reputation they’re building
- Part of operational infrastructure
That perspective changes the calculation.
Platform vs. system — the cost difference
Two types of professional solutions exist, with different cost structures.
You choose music, you manage zones, you bear responsibility for context. Your time isn't factored in.
You get a ready solution that works. Less flexibility, but peace of mind is built into the price.
Which option is “cheaper” depends on how you value your own time.
The decision structure
Questions that help with the calculation:
If the answer is “a lot,” a system might save more than it costs.
If the answer is “no,” a platform might create work we didn’t plan for.
If the answer is “very,” that has a price — either in time or money.
A “cheap” solution carrying legal risk isn’t cheap — it just delays the cost.
Perspective
Music isn’t just “another expense.” It affects how guests feel. How long they stay. Whether they return.
A $2 daily cost for professional atmosphere—that’s not an expense. That’s an investment in experience.
The most expensive option long-term isn’t the professional solution.
The most expensive option is constantly thinking about music—instead of thinking about guests.
Common questions
For a small restaurant, total annual cost runs $400-800, which includes the license ($200-500) and professional music source ($250-600). That works out to about $2 per day over 300 operating days.
Spotify Premium is intended for personal use. Terms of service explicitly prohibit commercial use. Inspectors treat this as unauthorized use, with potential fines of $25,000 or more.
The license grants the right to publicly play music — it’s a legal requirement. The music source is the service that actually plays the music (radio, streaming, professional service). You need both for legal operation.
Depends on your priorities. Platforms give control but require your time. Systems give ready solutions but less flexibility. Calculate what your time is worth when making the decision.
Resources
- Check your local performing rights organization for licensing requirements
- License fees: available on official portals for your region