Choosing licensed music for business is not just about finding something to play over the speakers. For operators and decision-makers in retail, fitness, and hospitality, music affects legal compliance, brand identity, customer experience, and operational control.
This guide is designed to help businesses compare licensed music options side by side. It explains what licensed music means in a commercial setting, outlines the main solution categories, and breaks down how needs differ across retail, fitness, and hospitality environments.
This is not legal advice, and it is not a one-size-fits-all recommendation. Instead, it is a practical comparison framework. You can read it top to bottom or jump directly to the section that matches your business type.
What “licensed music for business” means, and why it matters before you compare options
Licensed music for business refers to music that is legally cleared for public performance and commercial use. When copyrighted music is played in a business environment where customers or staff can hear it, it is considered a public performance under copyright law.
This is why music licensing requirements for businesses differ from personal listening. Consumer streaming services, like Spotify and Apple music are licensed for private use, not for publicly performing copyrighted music in a business environment.
Common points of confusion include assuming that paid consumer streaming accounts are legal and that radio stations are automatically covered. In reality, any music played in your business that is audible to others typically requires a public performance license.
Throughout this guide, we compare licensed music solutions using four criteria that matter most in real operations:
- Compliance clarity and risk reduction
- Control over music and playback
- Scalability across multiple locations
- Experience quality for customers and employees
The main ways businesses get licensed music
There are three primary approaches businesses use to obtain background music for commercial use. Each comes with trade-offs.
Direct licensing through performing rights organizations
Some businesses choose to license music directly through performing rights organizations. This involves securing appropriate music licenses, paying license fees, managing renewals, and ensuring coverage across all locations.
This approach offers control, but it also introduces administrative complexity and ongoing responsibility.
Business music providers that bundle licensing and playback
Business music providers bundle properly licensed music with playback technology and management tools. Licensing is handled through the service, curated stations are designed for business use, and controls support scheduling and brand consistency.
This approach prioritizes clarity, simplicity, and scalability.
Royalty-free music libraries
Royalty-free libraries allow businesses to use music without ongoing royalties. While this can reduce licensing complexity, these libraries exclude familiar or popular music and may limit experience quality over time.
No option is universally best. The right choice depends on business size, internal resources, and how critical music is to the customer experience.
Licensed music providers vs consumer streaming: a head-to-head comparison
Many businesses consider using consumer streaming services because they are easy and familiar. However, the differences between consumer streaming and licensed music providers are significant.
To start cxonsumer streaming services are not licensed for commercial use. They do not provide public performance licenses or business controls. Features like different music in different zones of your business, scheduling, and content filtering are either unavailable or unreliable.
Licensed music providers are built for commercial environments. They offer fully licensed music, curated stations, centralized control, and tools designed for businesses operating across one or many locations.
Relying on the idea that “everyone plays spotfiy in their business” is not a safe benchmark. Risk accumulates quietly, especially as businesses grow or become more visible.
In retail, this can lead to inconsistent brand sound across stores. In fitness, instructors may rely on personal music streaming accounts. In hospitality, inappropriate or repetitive music can undermine the guest experience. Music for business build licensed solutions reduce these risks over time.
Comparing licensed music solutions by business type
Different business environments require different comparison criteria.
Customer flow, dwell time, operating hours, and staffing models all influence what matters most in a music solution. A single-location shop has different needs than a national brand with multiple locations.
The sections below break down what to prioritize by industry.
Retail comparison: what to look for in a licensed music solution
Retail environments rely on music to reinforce brand identity and influence how long customers stay. Dwell time is a major factor with retail environments where the right music can actually increase sales.
Single-location retailers often prioritize ease of setup and brand-safe curation. Multi-location brands need consistency and centralized control.
Key comparison factors include:
- Dayparting and scheduling different playlists throughout the business day
- Explicit content controls
- Curated music for business stations that are reliable
- Central management across multiple locations
In retail, consistency often matters more than cost alone. The right background music supports a cohesive brand experience across every store and increased dwell time and customer connection with your business.
Fitness comparison: licensed music options for gyms and studios
Fitness businesses face unique challenges because music is integral to energy and performance.
Background music for common areas differs from music used in instructor-led classes. Tempo control, reliability, and compliance are critical.
Key comparison points include:
- Energy and tempo control by class type or time of day
- Instructor flexibility without relying on personal streaming accounts
- Reliability during peak usage periods
- Clear coverage for all areas of the facility
Common compliance gaps in fitness occur when instructors use personal Spotfiy or Apple Music playlists which are unlicensed and put your business at risk. Licensed music solutions eliminate this risk while supporting a high quality music experience.
Hospitality comparison: restaurants, bars, and hotels
Hospitality environments are among the most complex when it comes to music.
Restaurants, bars, patios, lobbies, and guest areas all require different sound profiles to signal a change in mood as guests move through a property. Volume is especially important in spaces like hotel lobbies, where meaningful conversations with guests take place. Music should sit comfortably in the background, never overpowering interaction, while offering enough variety to support long operating hours for employees.
Features that matter most include:
- Atmosphere consistency across spaces
- Volume normalization to support employee and guest conversations
- Playlist depth to prevent repetition
- Brand-safe curation for diverse audiences
Licensing considerations often extend beyond background music to include televisions, live music, DJs, and special events. These uses are licensed differently than background music provided through a business music service, so understanding where your coverage starts and stops is essential for avoiding copyright issues while protecting the guest experience.
How Custom Channels compares to other licensed music approaches
Custom Channels is one of several ways businesses can approach licensed music for business.
Compared to direct licensing, Custom Channels simplifies compliance by bundling licensing, curated stations, and playback management into a single service.
Compared to royalty-free solutions, Custom Channels gives you access to virtually any song your customers know and love, curated by our music team into purpose-built styles designed specifically for real commercial environments.
And compared to basic plug-and-play platforms, Custom Channels offers both ease of setup and deeper brand-forward curation, centralized governance, and control across multiple locations.
Comparison checklist: choosing the right licensed music solution
When comparing options, ask the following questions:
- Is the music properly licensed for commercial use?
- Is licensing coverage clearly explained?
- Can I control scheduling, zones, and content?
- Does this scale across multiple locations?
- What happens when we expand or change formats?
Red flags include vague licensing explanations, reliance on personal accounts, and limited visibility into what is playing.
Choosing the right background music solution helps protect your brand and support long-term growth.
Choose a Licensed Music Solution That Protects Your Brand and Elevates the Experience
Comparing licensed music options requires looking beyond price alone.
Compliance clarity, operational control, and customer experience determine whether music becomes an asset or a liability. Properly licensed music reduces risk, supports brand identity, and helps customers stay longer.
If you want help comparing licensed music for business options, Custom Channels offers consultative guidance based on your business type and scale.
Learn more about licensed music for business, understand Who’s in charge of the music that’s playing, or review our guide to music licensing laws.
FAQs
How can I legally play music in my business?
By using properly licensed music through direct licensing or a licensed business music provider.
What is a music license for commercial use?
It is permission to publicly perform copyrighted music in a business environment.
What music can I use for commercial use?
Properly licensed music, royalty-free music with appropriate rights, or music provided by licensed business music services.
Do I need both ASCAP and BMI licenses for music?
In many cases, yes. ASCAP and BMI represent different artists and songs, and no single performing rights organization covers everything. You can license directly with one organization, but artists move between them over time, which means coverage can change without you realizing it.
Written by Mark Willett, Head of Partnerships, Custom Channels
Reviewed by Josh Torrison, Head of Marketing, Custom Channels
Josh Torrison has spent nearly a decade at Custom Channels helping national brands manage music compliance, curate on-brand sound, and resolve licensing questions across retail, hospitality, and restaurant environments.
