Within Rights

Why cafes pay to play songs

Public performance licences explain why background music in ordinary businesses can trigger royalty payments.

On this page

  • What counts as public performance
  • Why blanket licences exist
  • Where recording and composition payments split
Preview for Why cafes pay to play songs

Introduction

Many people assume that buying a CD, subscribing to a streaming service or turning on a radio gives a café, pub or venue the right to play music for customers. In copyright law, however, playing music in a business is usually a separate activity known as a public performance. That is why ordinary businesses often need music licences even when they acquired the music legally. Governments and collecting societies treat music played in customer-facing spaces as a commercial use that can generate royalties for songwriters, performers and recording owners. [GOV.UK]GOV.UKGet a licence to play live or recorded musicYou usually need a licence from PPL PRS to play live or recorded music in public - includes p…

Public play illustration 1 In practice, cafés, bars, restaurants, gyms and event venues rarely negotiate directly with thousands of rights holders. Instead, they rely on collective licensing systems that grant permission to use large repertoires of music through a single agreement. These arrangements are one of the most visible examples of how music rights operate in everyday life. [ascap.com]ascap.comWhy ASCAP Licenses Bars, Restaurants & Music VenuesMost of ASCAP's licensees take out “blanket licenses,” meaning that licensed venues pa…

What counts as public performance?

For most businesses, public performance is broader than live concerts. It can include background music played through speakers, radio broadcasts audible to customers, television music channels, streamed playlists, DJs, karaoke and many forms of live entertainment. UK guidance states that businesses generally need permission when music is played in public spaces or work environments, while US performing-rights organisations define public performance as music played in places open to the public or where people gather outside a normal family setting. [SoundMachine]sound-machine.comSound Machine ASCAP Music License for Business | Sound Machine Under U.Scopyright law, a “public performance” occurs when music is played in a place open to the public or in a setting where a substantial numbe… [GOV.UK]GOV.UKGet a licence to play live or recorded musicYou usually need a licence from PPL PRS to play live or recorded music in public - includes p… [PRS for Music]WikipediaWhat is TheMusicLicence - PPL PRSMay 1, 2026…Published: May 1, 2026

A practical café example illustrates the point:

  • A café owner streams a playlist through speakers during opening hours.
  • Customers hear the music while eating and socialising.
  • The music contributes to the atmosphere of the business.
  • The use is therefore treated differently from private listening at home.

The same principle often applies whether the music comes from a radio, a commercial music service, a DJ or a live performer. Even a small venue hosting occasional acoustic nights may need licences covering the musical works being performed. [PRS for Music]WikipediaWhat is TheMusicLicence - PPL PRSMay 1, 2026…Published: May 1, 2026

This can surprise business owners because they are not selling music itself. Copyright law focuses on the act of communicating music to the public, not merely on whether admission is charged or music is the main attraction. [Nixon Peabody LLP]nixonpeabody.comNixon Peabody LLPIs your business playing music in public spaces legally?21 Jan 2026 — Under US copyright law, any public performance of…

Why blanket licences exist

Imagine a venue wanting permission to play any of the millions of commercially released songs available today. Negotiating individually with every songwriter, publisher, performer and record company would be practically impossible.

Blanket licences solve this problem. A collecting society or performing-rights organisation aggregates rights from large numbers of creators and grants businesses broad permission to use that repertoire. In exchange, venues pay licence fees that are later distributed as royalties. ASCAP describes this as a way to avoid the burden of seeking permission song by song, while UK licensing bodies offer similar broad coverage through collective schemes. [ascap.com]ascap.comASCAP Music Licensing FAQsASCAP licenses the public performances of its members' musical works. A public performance is one that occurs e…

For a typical café or bar, the attraction of a blanket licence is simplicity:

  • One licence can cover vast catalogues of music. [reddit.com]reddit.comASCAP etc licensing: r/BarOwnersHey everyone, I'm curious what your ascap/bmi/seesac yearly fees are. I feel like the limited informatio…
  • The business avoids researching ownership of every track.
  • Rights holders receive compensation through collective distribution systems.
  • Enforcement becomes more practical than monitoring individual permissions.

Without blanket licensing, many venues would either stop using music or face overwhelming administrative costs. The system emerged largely because large-scale music use became economically valuable long before digital databases made ownership easier to track. [opentext.uoregon.edu]opentext.uoregon.eduPerformance Rights – Pay for Play: How the Music Industry…ASCAP's mission was to create a “blanket licensing” system, whereby public v…

Public play illustration 2

How licensing works in everyday businesses

The exact structure differs by country, but the operational logic is similar. Businesses describe their premises and music usage, and fees are often based on factors such as floor area, customer capacity, type of music use and whether live performances occur. [moodby.com]moodby.comwhy music licensing for restaurants is essential4 Sept 2025 — Avoid costly fines! Discover how proper music licensing can protect your restaurant and boost the perfect dining vibe… [PRS for Music]WikipediaWhat is TheMusicLicence - PPL PRSMay 1, 2026…Published: May 1, 2026

A restaurant that quietly plays background music throughout the day may pay under a different tariff from a late-night venue hosting DJs and live acts. Event organisers frequently obtain temporary permissions for one-off performances rather than maintaining a year-round licence. [PPL PRS]pplprs.co.ukTheMusicLicenceTheMusicLicence allows you to legally play and perform music in your business, whether through the radio, TV, other digita…

The distinction between personal and commercial music services is also important. Personal subscriptions to consumer streaming platforms generally do not automatically grant public-performance rights for business use. A business may still need separate licensing even though the underlying stream was lawfully accessed. [Nixon Peabody LLP]nixonpeabody.comNixon Peabody LLPIs your business playing music in public spaces legally?21 Jan 2026 — Under US copyright law, any public performance of…

Where recording and composition payments split

One reason music licensing feels complicated is that public performance often involves more than one copyright.

When a café plays a recording of a song, two layers may be involved:

Right involvedTypical beneficiariesMusical compositionSongwriters and music publishersSound recordingPerformers and recording rightsholders, often record labels

In the UK, PRS for Music and PPL represent different sets of rights holders, and businesses may need permissions that ultimately support both sides of the industry. Public-performance fees collected through joint licensing arrangements are later distributed through those separate systems. [Background Sounds]backgroundsounds.co.ukBackground SoundsDifference Between PRS and PPL - A Beginners GuidePRS (Performing Rights Society) collects royalties for songwriters, co… [PRS for Music]WikipediaWhat is TheMusicLicence - PPL PRSMay 1, 2026…Published: May 1, 2026 [PPL PRS]pplprs.co.ukLive Events & Festivals Music LicenceIf you're staging live music events, concerts, festivals or even theatrical performances, you'll usu…

This explains why a single song played in a café can generate money for multiple parties. The songwriter who created the composition may be paid through one channel, while the musicians and owners of the recording may be paid through another. The listener hears one track, but the royalty system sees overlapping rights interests. [PRS for Music]WikipediaWhat is TheMusicLicence - PPL PRSMay 1, 2026…Published: May 1, 2026

Live music adds another layer

A live performance changes the mix of rights involved. If a singer performs a song without using the original recording, the sound-recording right may not be central in the same way. However, the underlying composition is still being publicly performed, which is why venues often need licences covering live music events as well. [PRS for Music]WikipediaWhat is TheMusicLicence - PPL PRSMay 1, 2026…Published: May 1, 2026

In some licensing systems, setlists and performance reports help determine how royalty income is allocated among songwriters whose works were actually performed. [Orphiq]orphiq.comperformance royalties explainedOrphiqPerformance Royalties Explained for Artists9 Apr 2026 — The venue pays a blanket license fee to PROs. If you submit your setlist, y…

Why these licences remain controversial

Business owners sometimes view music licences as an unexpected operating cost, particularly when music is only background ambience. Collecting societies, by contrast, argue that music helps create the atmosphere that attracts and retains customers and that creators deserve compensation when their work contributes to commercial activity. [ascap.com]ascap.comVenues Refuse to Pay Songwriters While Profiting from…Mar 10, 2026 — Songwriters earn their livelihoods by licensing the performance r…

Disputes often arise over questions such as:

  • Whether a particular use truly counts as public performance.
  • How licence fees should be calculated.
  • Whether small businesses receive sufficient value from the music they play.
  • How accurately royalties are distributed back to creators.

These debates have existed for decades and help explain why music rights remain a visible and sometimes contentious part of running hospitality and entertainment businesses. [Wikipedia]WikipediaPRS for MusicWhat is TheMusicLicence - PPL PRSMay 1, 2026…Published: May 1, 2026

Public play illustration 3

The practical takeaway

For cafés, pubs, restaurants and venues, music licensing is less about negotiating with individual artists and more about participating in a collective system. Public-performance licences allow businesses to use large catalogues of music legally while creating a mechanism for compensating songwriters, performers and recording owners. The result is a compromise between convenience and copyright: a café can play thousands of songs without clearing each one individually, while creators receive royalties from music that has become part of everyday commercial life. [ascap.com]ascap.comUsing Music in Political CampaignsWe license the right to publicly perform our members' music to businesses that use it – including radio… [PPL PRS]pplprs.co.ukPPL PRSPubs & Bars Music Licencetemporary permit to cover the music usage at the event. Contact us to set up…Read more…

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Endnotes

  1. Source: GOV.UK
    Link: https://www.gov.uk/licence-to-play-live-or-recorded-music
    Source snippet

    Get a licence to play live or recorded musicYou usually need a licence from PPL PRS to play live or recorded music in public - includes p...

  2. Source: nixonpeabody.com
    Link: https://www.nixonpeabody.com/insights/articles/2026/01/21/is-your-business-playing-music-in-public-spaces-legally
    Source snippet

    Nixon Peabody LLPIs your business playing music in public spaces legally?21 Jan 2026 — Under US copyright law, any public performance of...

  3. Source: ascap.com
    Link: https://www.ascap.com/help/ascap-licensing/why-ascap-licenses-bars-restaurants-music-venues
    Source snippet

    Why ASCAP Licenses Bars, Restaurants & Music VenuesMost of ASCAP's licensees take out “blanket licenses,” meaning that licensed venues pa...

  4. Source: pplprs.co.uk
    Link: https://pplprs.co.uk/themusiclicence/
    Source snippet

    TheMusicLicenceTheMusicLicence allows you to legally play and perform music in your business, whether through the radio, TV, other digita...

  5. Source: ascap.com
    Link: https://www.ascap.com/help/ascap-licensing
    Source snippet

    ASCAP Music Licensing FAQsASCAP licenses the public performances of its members' musical works. A public performance is one that occurs e...

  6. Source: pplprs.co.uk
    Link: https://pplprs.co.uk/themusiclicence/sectors/live-events-festivals/
    Source snippet

    Live Events & Festivals Music LicenceIf you're staging live music events, concerts, festivals or even theatrical performances, you'll usu...

  7. Source: opentext.uoregon.edu
    Link: https://opentext.uoregon.edu/payforplay/chapter/chapter-27-performance-rights/
    Source snippet

    Performance Rights – Pay for Play: How the Music Industry...ASCAP's mission was to create a “blanket licensing” system, whereby public v...

  8. Source: moodby.com
    Title: why music licensing for restaurants is essential
    Link: https://moodby.com/blog/why-music-licensing-for-restaurants-is-essential/
    Source snippet

    4 Sept 2025 — Avoid costly fines! Discover how proper music licensing can protect your restaurant and boost the perfect dining vibe...

  9. Source: pplprs.co.uk
    Title: PPL PRSPubs & Bars Music Licence
    Link: https://pplprs.co.uk/themusiclicence/sectors/pubs-bars/
    Source snippet

    temporary permit to cover the music usage at the event. Contact us to set up...Read more...

  10. Source: orphiq.com
    Title: performance royalties explained
    Link: https://orphiq.com/resources/performance-royalties-explained
    Source snippet

    OrphiqPerformance Royalties Explained for Artists9 Apr 2026 — The venue pays a blanket license fee to PROs. If you submit your setlist, y...

  11. Source: ascap.com
    Link: https://www.ascap.com/press/2026/03/3-10-venues-refuse-to-pay-songwriters
    Source snippet

    Venues Refuse to Pay Songwriters While Profiting from...Mar 10, 2026 — Songwriters earn their livelihoods by licensing the performance r...

  12. Source: Wikipedia
    Title: PRS for Music
    Link: https://en.wikipedia.org/wiki/PRS_for_Music
    Source snippet

    What is TheMusicLicence - PPL PRSMay 1, 2026...

    Published: May 1, 2026

  13. Source: ascap.com
    Link: https://www.ascap.com/help/ascap-licensing/political-campaign-license-faqs
    Source snippet

    Using Music in Political CampaignsWe license the right to publicly perform our members' music to businesses that use it – including radio...

  14. Source: ascap.com
    Link: https://www.ascap.com/music-users/types/bgt-landing-page-2
    Source snippet

    Music Licensing for Restaurants, Bars and NightclubsWith an annual ASCAP music license, you have unlimited [access]({{ 'access/' | relative_url }}) to ASCAP's expansive ca...

  15. Source: youtube.com
    Title: PPL PRS Ltd
    Link: https://www.youtube.com/watch?v=F3G955sY_lQ
    Source snippet

    Understanding Music Licensing for Business...

  16. Source: prsformusic.com
    Link: https://www.prsformusic.com/licences/playing-music-at-work
    Source snippet

    Licences for playing music at workTheMusicLicence from PPL PRS allows you to play music in your business whether through the radio, TV, o...

  17. Source: sound-machine.com
    Title: Sound Machine ASCAP Music License for Business | Sound Machine Under U.S
    Link: https://sound-machine.com/licensing/ascap
    Source snippet

    copyright law, a “public performance” occurs when music is played in a place open to the public or in a setting where a substantial numbe...

  18. Source: prsformusic.com
    Link: https://www.prsformusic.com/our-global-network/prs-managed-territories/prs-managed-territories-licensing-music
    Source snippet

    PRS for MusicLicensing musicIf your business plays any type of recording in a public or staff space, you'll need a PRS for Music licence...

  19. Source: prsformusic.com
    Link: https://www.prsformusic.com/licences/playing-music-at-work/all-music-at-work-tariffs
    Source snippet

    View all tariffsWhether you run a café, shop, gym or any other workplace that plays music, a PPL PRS Music Licence allows you to legally...

  20. Source: pplprs.co.uk
    Title: PPL PRSPPL PRS Help
    Link: https://pplprs.co.uk/help/
    Source snippet

    PPL PRS Help - PPL PRS - TheMusicLicenceDo I need a licence? What is TheMusicLicence? How much does it cost? Find help and answers to our...

  21. Source: prsformusic.com
    Link: https://www.prsformusic.com/what-we-do/who-we-work-with/ppl
    Source snippet

    PRS for MusicPPL and PRS for MusicPRS for Music and PPL are separate organisations who license different sets of rights in the use of mus...

  22. Source: pplprs.co.uk
    Link: https://pplprs.co.uk/
    Source snippet

    PPL PRSPPL PRS | TheMusicLicence | The UK's public music licensing...PPL PRS is the UK's music licensing company. If you use, play or li...

  23. Source: backgroundsounds.co.uk
    Link: https://www.backgroundsounds.co.uk/what-is-the-difference-between-prs-and-ppl/
    Source snippet

    Background SoundsDifference Between PRS and PPL - A Beginners GuidePRS (Performing Rights Society) collects royalties for songwriters, co...

  24. Source: prsformusic.com
    Link: https://www.prsformusic.com/-/media/files/prs-for-music/licensing/faqs/ipc-faq-doc-24.pdf
    Source snippet

    FAQs IPC Blanket LicenceWhat does the IPC Blanket Licence allow Production Companies to do? The IPC Blanket Licence allows Production Com...

  25. Source: prsformusic.com
    Link: https://www.prsformusic.com/licences/buy-a-licence-online
    Source snippet

    Buy a licence onlineThis blanket licence covers the use of music in your own CDs, DVDs and more... If you have pre-cleared the mechanica...

  26. Source: prsformusic.com
    Link: https://www.prsformusic.com/licences

  27. Source: prsformusic.com
    Link: https://www.prsformusic.com/help/help-with-buying-a-licence
    Source snippet

    use of music in your own CDs, DVDs and more...

  28. Source: prsformusic.com
    Link: https://www.prsformusic.com/-/media/files/prs-for-music/licensing/mcps-updated/limited-manufacture-faqs-2025.pdf
    Source snippet

    Grand Rights Licence is required for the performance or the recording of any copyright dramatico-musical works. A dramatic production inc...

  29. Source: pplprs.co.uk
    Link: https://pplprs.co.uk/themusiclicence/sectors/restaurants-cafes/
    Source snippet

    Restaurants & Cafés Music LicenceTheMusicLicence allows you to legally play music for customers and employees in your restaurant or café...

  30. Source: pplprs.co.uk
    Link: https://pplprs.co.uk/themusiclicence/sectors/sports-events/
    Source snippet

    Sports Event Music LicenceTheMusicLicence allows you to legally play or perform music for those at your stadium/sporting area, hospitalit...

  31. Source: pplprs.co.uk
    Link: https://pplprs.co.uk/themusiclicence/sectors/charity/
    Source snippet

    Charity Event Music LicenceTheMusicLicenceallows you to legally play music for employees or customers in your business through the radio...

  32. Source: pplprs.co.uk
    Link: https://pplprs.co.uk/background-music/other-recordings/
    Source snippet

    CDs, MP3s & Other Recordings... TheMusicLicence. Music that's played outside of a domestic environment is classed as a public performance...

Additional References

  1. Source: reddit.com
    Link: https://www.reddit.com/r/BarOwners/comments/bmor14/ascap_etc_licensing/
    Source snippet

    ASCAP etc licensing: r/BarOwnersHey everyone, I'm curious what your ascap/bmi/seesac yearly fees are. I feel like the limited informatio...

  2. Source: ppluk.com
    Link: https://www.ppluk.com/royalties/getting-started-with-royalties/
    Source snippet

    Getting started with royaltiesRegister with PPL for free to receive UK royalties a performer on a piece of recorded music (from lead sing...

  3. Source: facebook.com
    Link: https://www.facebook.com/groups/txmusicnet/posts/10161399747861827/
    Source snippet

    Is there a list of songs using ASCAP but not BMI for venues?According to CharGPT- There isn't a straightforward public list that exclusiv...

  4. Source: businesstapas.co.uk
    Link: https://businesstapas.co.uk/music-licensing-in-public-spaces/
    Source snippet

    Music Licensing in Public SpacesIn the UK, if you are playing music in public or at your business, you will need to get TheMusicLicence f...

  5. Source: makingmusic.org.uk
    Link: https://www.makingmusic.org.uk/resource/prs-versus-ppl
    Source snippet

    PRS versus PPLWhen your music group performs you may need a PRS for Music licence. Some groups may also need a PPL licence if they use re...

  6. Source: restaurantowner.com
    Link: https://www.restaurantowner.com/public/Paying-the-Piper-Restaurant-Music-Licensing-Fees.cfm
    Source snippet

    Paying the Piper: Restaurant Music Licensing FeesThe PROs issue blanket licenses, described by ASCAP as "a license which allows the music...

  7. Source: researchbriefings.files.parliament.uk
    Link: https://researchbriefings.files.parliament.uk/documents/SN04899/SN04899.pdf
    Source snippet

    Research BriefingsPlaying music in publicPRS for Music licenses the public performance of original musical works... PPL licenses the pub...

  8. Source: mcpsproductionmusic.co.uk
    Link: https://mcpsproductionmusic.co.uk/licensing/broadcaster-blanket/

  9. Source: soundsuit.fm
    Title: ASCA P & BMI Music Licensing Guide for Businesses**Public (small rights) vs
    Link: https://soundsuit.fm/bmi-and-ascap-music-licensing-for-businesses/
    Source snippet

    grand rights** – Blanket licenses cover public performance (small rights), not grand rights (e.g., musicals, dramatic works)...Read more...

  10. Source: sltn.co.uk
    Title: if your customers can hear music you cant shake off music licensing
    Link: https://sltn.co.uk/2026/02/12/if-your-customers-can-hear-music-you-cant-shake-off-music-licensing/
    Source snippet

    If your customers can hear music, you can't shake off music...12 Feb 2026 — If you play any form of music in your pub, bar, restaurant...

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