Is it legal to play Spotify in your bar? Here is what it actually costs.
ยท DJing
Consumer streaming accounts are not licensed for venues. A plain guide to music licensing for bars and restaurants, what the fines really look like, and how to stay on the right side of the law.
The short version
Most bars and restaurants are playing music illegally and have no idea. If the Spotify, Apple Music, or Pandora account behind your speakers is a normal consumer subscription, it is not cleared for a room full of paying customers. The services say so themselves, in the terms nobody reads. Surveys put the share of owners who know this at roughly one in five.
This is not a scare piece. It is the part nobody explains until a letter shows up. Here is how it actually works, and what it costs.
Why your personal Spotify does not count
A consumer subscription pays artists a tiny amount per private listen. Play that same track to a busy bar and it becomes a public performance. Different right, much higher value, and consumer apps do not pay for it. So the licence you assume you have covers your kitchen at home, not a dining room full of guests.
Paying every month does not change that. The account is simply the wrong type for the use.
What you actually need
Public music in a venue needs a performing rights licence. In the United States that usually means more than one, because the catalogue is split across separate organisations:
- ASCAP, BMI, SESAC, and GMR each control different songs
- A licence with one does not cover the others
- Plenty of venues hold one and still get a demand letter from another
In the UK and much of Europe it looks tidier, usually PRS and PPL, but you still need both. One covers the songwriters, the other covers the recording.
The numbers
For a small venue, blanket licences tend to land somewhere around 300 to 500 dollars a year per organisation. Bigger rooms pay more, worked out from capacity, whether the music is live or recorded, and whether a DJ is playing.
Skip it and you do not get a polite reminder. Statutory damages in the US run from 750 dollars to 30,000 dollars per song, and as high as 150,000 where a court finds the use wilful. Settlements for a small restaurant usually sit in the tens of thousands. These organisations send people in to listen, and they do sue.
The legal ways to play
A few honest options exist:
- Buy a proper business music service built for commercial use, which folds the public-performance cost into a monthly fee
- Hold your own PRO licences and play what you like within them
- Book live performance, which is where a curated DJ comes in
A playlist on shuffle is the cheap default. It is also the option that reads a room the least. A DJ who watches the floor and lifts the energy at 11pm is doing something an algorithm cannot, and that is usually the part guests remember the next morning.
Where DJing.com fits
We give a venue two honest ways to handle this. The lighter one is Open DJ Sets Radios: continuous DJ sets built from tracks cleared for commercial use, so you can run background music without paying a PRO license at all. Already hold a license and just want good background DJ sets? It works that way too, and it can generate a compliance certificate for your records.
We connect venues with curated DJs who play live, in studio-quality audio, straight to your sound system, with no touring cost and nothing to install. What we stream is a commercial product, not a personal account piped through someone's laptop. You still want your local performance licence in place, the same as you would for a jukebox or a live band, but you are no longer leaning on a consumer app that was never built for your room.
Run a bar, hotel, lounge, or restaurant, and that is the jump from background shuffle to something people come back for.
One more thing for the DJs reading this. Venues need you more than they let on. A DJ who can play remotely, reliably, with clean audio, is quietly fixing a problem that keeps owners up at night.
Run a venue? See how it works for venues. You are a DJ? Start with a DJ profile.