Music Licensing for Hospitality: A Complete Guide for 2026

Music in a hospitality venue is rarely a topic of discussion until it becomes a problem.

A restaurant owner knows how much electricity costs. Knows what they pay the wine supplier. Knows the rent down to the last cent. But when someone mentions music licensing, the conversation often stops. Or goes in the wrong direction.

There are two common approaches to this topic. The first is ignoring it—hoping someone else will handle it, that it might go unnoticed, that it’s a topic for “later.” The second is panic—quick registration without understanding, paying for something that isn’t clearly defined, feeling that the whole system is opaque.

Neither approach serves the owner.

This guide exists to provide a third path: calm understanding of the system, the steps, and the obligations. Not because music licensing is simple—it isn’t always—but because it’s more understandable than most assume when approached with the right framework.

Why music licensing exists at all

Before we talk about fees and registration, it’s worth understanding what performing rights organizations (PROs) are and why they exist.

In every country, organizations collect royalties on behalf of music creators: ASCAP, BMI, and SESAC in the United States, PRS in the UK, GEMA in Germany, ZAMP in Croatia. The details differ, but the principle is universal: using someone else’s creative work for commercial purposes requires compensation to the creator.

When a composer writes a song, that song represents intellectual property. Using that song in a public space—whether in a restaurant, hotel, store, or hair salon—is legally considered a public performance. For that performance, the creator has a right to compensation.

There’s a certain irony in the fact that the same owner who pays for software licenses, who understands why rent exists for their space and fees for using a supplier’s brand — that same owner often considers music licensing unnecessary.

Music is business infrastructure. Its use has a cost. That’s the starting point.

Who is required to have a music license

The law is clear: every business that uses music in a space accessible to the public must have agreements with the relevant PROs.

“Public” here doesn’t mean hundreds of people. If someone who isn’t a member of your household can enter your space — your space is public. A restaurant with five tables is a public space. A boutique hotel with twelve rooms is a public space. A dentist’s waiting room is a public space.

The obligation applies regardless of the music source. Radio, television, CDs, USB, streaming service—all are subject to the same rules. The method of reproduction doesn’t change the legal basis.

Categories typically covered include:

• Hospitality venues — restaurants, cafés, bars, nightclubs, pizzerias, bakeries
• Hotels and accommodation — hotels of all categories, hostels, apartments with reception or public space
• Retail stores — from small boutiques to large shopping centers
• Wellness and fitness — gyms, spa centers, hair and beauty salons
• Healthcare facilities — office waiting rooms, private clinics
• Office spaces — if there’s music in common areas accessible to clients

Exemptions exist only for strictly private spaces without any public function.

How annual fees are calculated

This is the part that confuses owners most. License fees aren’t a fixed amount—they’re calculated according to criteria specific to each venue.

Main factors

Type of business — Different categories have different rate classes. A hotel and cafe of the same square footage pay differently.

Space size — Larger spaces mean higher fees. Space is usually divided into classes: up to 75 m², 76-150 m², 151-250 m², etc.

Type of reproduction — Distinctions are made between background music (lowest rate), music from radio/TV receivers, music from mechanical carriers (CDs, USB drives, streaming), and live music (highest rate).

Number of accommodation units — For hotels, a per-room fee is added to fees for public spaces (lobby, restaurant, wellness).

Seasonal operation — Venues that operate seasonally may receive discounts.

Outdoor spaces — Terraces and outdoor areas are treated as additional zones with surcharges.

Example annual costs

The registration process

Registration isn’t complicated if you approach it with the right data.

Before contacting your PRO, prepare:

• Business entity information
• Venue address — If you have multiple locations, each is registered separately
• Exact space dimensions — Including all zones where music is played
• Number of accommodation units — For hotels and hostels
• Type of reproduction — Radio, TV, CD/USB, streaming, live music
• Zone plan — If you have different spaces (e.g., restaurant + terrace + spa)

The process itself

Inspections: What actually happens

PRO inspectors have legal authority to check business spaces. Inspections are unannounced — this is standard practice, not an exception.

Typical procedure

The inspector enters the venue as a guest, notices that music is playing, and identifies themselves with official credentials.

Requests to see the licensing agreement. If you don’t have it on hand, insists on verification—contract date, rate class, zones it covers.

Checks for consistency. Do you have a contract for the restaurant, but music is also playing on the terrace? The terrace must be in the contract. Is music in the hotel lobby playing from USB, but the contract only covers radio? That’s a discrepancy.

Documents findings. If there’s a discrepancy, a report is issued. A letter follows with a call for compliance and potential penalties.

What an inspector cannot do

• Cannot forcibly stop you from operating
• Cannot seize equipment without a court order
• Cannot immediately collect a fine on the spot

What an inspector can do

• Document the irregularity
• Initiate proceedings for retroactive fee collection
• Report a violation leading to penalties

Why hospitality operators avoid this topic

There are several patterns.

First is ignorance. Many owners simply aren’t aware of the obligation. They assume that a Spotify subscription is sufficient, that radio “comes with ads so it’s probably free,” or that licensing is only relevant for large spaces.

Second is rationalization. “Everyone does it.” “I’ve never heard of anyone getting fined.” “Inspectors don’t come to my area anyway.” These arguments work—until they don’t.

Third is a sense of injustice. “I pay a subscription, why should I pay more?” This stems from not understanding what those subscriptions cover. A Spotify subscription grants the right to personal listening—not public performance.

Fourth is administrative resistance. Another form, another obligation, another cost. In the sea of daily tasks, music licensing falls to the bottom of the priority list.

None of these patterns changes the legal reality.

Streaming services and the legal blind spot

This deserves special attention because it’s the source of the most misunderstandings.

Spotify, Apple Music, YouTube Music, Deezer — all these platforms have clear terms of use. A personal account is intended for private, non-commercial use. Using it in a business space violates those terms.

But that’s only half the problem.

Even if a streaming service had a commercial license option (some do, like Spotify for Business in certain regions), that doesn’t replace PRO licensing. A streaming service licenses access to music for playback. PROs license the right to publicly perform that music.

These are two different legal relationships.

• Streaming subscription = book you own
• PRO license = permission for public reading

Both are needed. One doesn’t replace the other.

Planning music as part of operations

A hospitality operator who properly approaches music doesn’t think of it as a cost. They think of it as a tool.

Music affects consumption tempo. Slower music means guests stay longer, which means more beverage spending. Faster music means faster table turnover, which means more guests during peak hours.

Music affects perception. Music that matches the space and brand creates a coherent experience. Music that “doesn’t fit” creates cognitive dissonance — the guest might not know why they feel uncomfortable, but they feel it.

Music affects staff. A team working eight hours with music that doesn’t suit them will be more tired and less patient. A team working with music that supports their rhythm functions differently.

These things aren’t measurable in dollars on the bill at the end of the evening. But they accumulate over months and years.

Professional operators—those who understand that atmosphere is a system, not chance—treat music as an operational element. That includes legal compliance as a necessary prerequisite.

What a music license doesn’t solve

A common misconception is that a PRO license solves all music-related problems.

A PRO license grants the right to publicly perform music. It doesn’t provide:

• The music itself — you need a source (radio, CD, streaming, professional service)
• Music quality — PROs don’t care if the music fits your space
• Zone management — if you have a restaurant and terrace, you must ensure each zone has appropriate music
• Automation — PROs have nothing to do with whether jazz plays in your lobby in the morning and lounge music in the evening

PROs cover the legal dimension. The operational dimension remains on you.

Retroactive collection: The cost of delay

Hospitality operators who delay registration sometimes think the worst-case scenario is a fine. It isn’t.

The worst-case scenario is retroactive collection.

If an inspection determines that you used music without a contract, the PRO has the right to collect fees for the entire period of unauthorized use. In practice, this usually means up to several years back.

The total cost of “saving” quickly exceeds the total cost of paying properly from the start.

A system that works for you, not against you

Hospitality operators who have resolved their music licensing rarely think about it. The contract is signed. Invoices arrive. Music plays. Inspections don’t cause panic — just routine documentation checks.

That peace has value that isn’t visible in cost tables.

The music playing in your space — whether soft jazz backing morning coffee, a more energetic rhythm for the evening bar, or ambient sounds for the hotel spa — becomes part of what guests remember.

When the legal background is resolved, you can focus on what you actually want: a space where guests feel good.

Perhaps that’s the point.

Frequently asked questions