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Furthermore, if you are interested in playing music from multiple PROs, you will have to negotiate public performance licenses with each PRO separately. For very large establishments, these fees can be as much as $9,000 per location per year. On average, the annual license fee can range from $300 to $500 for a small business. Public performance license fees for each PRO vary and are based on different factors including the type of business, venue capacity, business hours, method of music transmission, and number of live performances. After reading this article, every question you have about performance licenses will be answered in under 5 minutes.
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But fear not! We are going to break down the basics of public performance licenses and explain everything you need to know about them, without being a music business wiz.
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So, if you are a business owner and are not sure if you have the proper license or not, you should definitely continue reading this article.Īll of this information may seem a little overwhelming and because music licensing isn’t the most sexy subject to discuss, it’s often not discussed at all. Technically by law, a business cannot open their doors and play music if they have not obtained the proper public performance license first. So of course, every little bit helps.Īside from just the artist's point of view, public performance licenses are even more important for businesses and business owners. You also understand how difficult it is to make money as a musician and how little the royalty percentages are that you actually get paid out. If you are an artist, you know the importance of getting credit where your credit is due. However, without this particular license in place, the artist would be receiving no credit for their work and would be receiving no royalty payments that are deserved. You may be thinking, “why is this necessary… don’t artists want their music shared with the public?” Specifically speaking, public performance licenses are a way to protect an artist from their music being played in public areas. Music licenses are essentially a way to protect musicians and the use of their copyrighted work. And if you don’t understand or know anything about music licensing, you will find out everything you need to know after reading this article. Most people would never stop to think about the rules and regulations regarding the music that they hear out in public spaces but to those of us in the music business, we understand the great importance of these specific licenses. According to The Copyright Act, a public performance roughly means that the work has been communicated beyond the home, and beyond one’s immediate circle of family and friends.
Rather, public performance relates to any song, recording, or musical work being played in a public setting. This permission to play music in public is what is called a public performance license.Īlthough the name of the license literally has public performance in the title, it has no relation to an actual live performance of the music by a musician. If you have ever been out to a restaurant, been shopping at a store, or have been anywhere in the general public and heard music being played - typically the business or entity must be granted specific permission in order to play that music… legally.