Can You Legally Play Spotify in Your Restaurant?

I’ve walked into hundreds of restaurants over 34 years and heard the same Spotify playlist running through the speakers. Most owners have no idea there is a problem - and the consequences when rights holders or collecting societies catch up with you are not small. This is one of the most common and most avoidable mistakes I see hospitality businesses make.

If you want to understand how music fits into a broader strategy for your venue, music strategy consulting is exactly what I offer. But first, the legal basics every restaurant owner needs to know.

Why Your Personal Spotify Account is Not Enough

Spotify’s terms of service are clear: a personal subscription is for private, non-commercial use only. The moment you play that music in a space where customers can hear it, you have moved into the territory of public performance. Spotify is not a radio station. It is a streaming service that licenses music for individual listening.

Playing music publicly in a commercial environment creates a separate legal obligation - one that exists regardless of whether you already pay for Spotify. Most countries require a public performance licence, and a personal Spotify subscription does not provide that.

Beyond the terms of service, most territories have collecting societies that represent composers, performers and record producers. These organisations actively monitor commercial venues and can pursue back-payment for unlicensed use.

How the Licensing System Works

In most countries, music rights are split between at least two types of rights holder:

Composition rights - the people who wrote the song: the composer, lyricist and publisher. There is usually one collecting society per country that handles this (for example: BUMA in the Netherlands, PRS in the UK, ASCAP or BMI in the US, SOCAN in Canada, APRA in Australia).

Recording rights - the people who recorded it: the performing artist and the record label. A separate collecting society typically handles this (for example: Sena in the Netherlands, PPL in the UK, SoundExchange in the US).

This means most venues need to register with two organisations, not one. The exact requirements, costs and processes vary by country. Always check what applies in your specific territory.

This table is illustrative, not exhaustive. Verify current requirements with the relevant organisations in your country.

Business Streaming as an Alternative

Several streaming services are built specifically for commercial environments. Unlike personal accounts, these are designed for venue use - they are built around commercial contexts, offer scheduling tools and are generally easier to use for public performance purposes.

Examples include Soundtrack Your Brand, Cloud Cover Music, Rockbot and Mood Media. Costs and coverage vary by service and territory. Always verify what a service covers in your specific country before assuming you are fully covered.

How Custom DJ Mixes Fit In

A professionally produced custom DJ mix from €249 does not replace your venue’s performance licences - those remain your responsibility regardless of where the music comes from. What a custom mix replaces is the generic streaming service. The mix is purpose-built for your space, your brand and your customers, and you are not dependent on an algorithm deciding what plays next.

Custom mixes also solve the consistency problem. A streaming service will occasionally surface a track that clashes with your brand tone, or play an ad if a subscription lapses. A finished mix plays the same way every time.

The Cost of Getting It Wrong

Collecting societies actively monitor commercial venues - in many countries through inspectors who visit unannounced. If your venue is found to be operating without the required registrations, you can receive a claim for back-payment covering the period of unlicensed use, plus penalties. The cost of proper registration is almost always a fraction of the cost of getting caught.

More importantly, the artists, composers and producers whose music shapes the atmosphere in your venue deserve to be paid for that use. The licensing system exists to make that happen.

If you want to build a music strategy that is both legally considered and genuinely effective for your venue, get in touch.

Key Takeaways:

• A personal Spotify subscription is for private use only - the terms of service do not permit commercial venue use
• Most countries require separate registrations for composition rights and recording rights
• The rules, organisations and costs vary by country - always verify what applies where you operate
• Commercial streaming services are built for business use; personal accounts are not
• A custom DJ mix replaces the streaming service, not the venue licence - that remains your responsibility

Frequently Asked Questions

Does this apply outside the Netherlands?

Yes. Most countries have their own collecting societies and their own rules around public performance. The principle is the same everywhere: personal streaming accounts are for private use, and playing music commercially requires appropriate registrations. The specific organisations and processes differ by country - check with the relevant bodies where you operate.

Can I use YouTube in my restaurant?

YouTube’s standard terms of service, like Spotify’s, are for personal non-commercial use. Playing it in a commercial venue where customers can hear it falls outside those terms. Check the rules in your country for the specific requirements that apply.

Does a commercial streaming service replace the need to register with collecting societies?

Not necessarily. Some commercial services negotiate directly with collecting societies and include certain rights in their subscription. Others do not. Always verify explicitly what a service covers in your specific country before assuming you are fully covered. Do not assume - confirm.

Do I need a licence if I only play background music quietly?

The volume does not change the requirement. Any music played in a commercial environment where customers can hear it is generally considered a public performance under most national laws. Check with the relevant organisations in your country for the specific rules.

What if the music comes from a radio or TV?

Radio and television broadcasters pay their own fees for broadcasting music. How this affects venues that play radio or TV in a commercial space varies by country and is often treated differently from recorded music playback. Check with your local collecting societies for what applies in your situation.

How much does proper music licensing cost?

It varies significantly by country, venue size, revenue and type of use. Both collecting societies in your territory will typically have online calculators or tariff guides. Register with them directly to get an accurate figure for your specific venue.

Ready to elevate your music strategy? Contact Kono