Music can lift the mood, keep customers browsing for longer and help your staff power through a busy shift. It’s no surprise many cafés, retailers and studios ask the same question: can I play Spotify in my business?
Short answer: not if you’re using a standard, personal Spotify account. In Australia, most consumer streaming services (Spotify, Apple Music, YouTube, etc.) are licensed for personal, non-commercial use only. Playing them in a business as background music counts as a “public performance” and requires specific licences - and using a consumer account in a commercial setting usually breaches the platform’s terms.
In this guide, we’ll walk through what “public performance” means in Australia, the licences most businesses need, practical options for playing music legally at your premises, and how to set up simple policies and contracts so your team stays compliant day-to-day. By the end, you’ll know exactly how to enjoy music in your venue without risking infringement notices or unexpected fees.
Is It Legal To Play Spotify In My Business?
Using a personal Spotify account in your business is generally not permitted. Spotify’s consumer plans are for private, non-commercial listening. When you play those tracks in a shop, café, gym or salon, that’s a public performance. You’ll typically need both:
- the right type of business music service (or other audio source) that allows commercial use, and
- the correct public performance licence(s) covering the music rights in Australia.
In Australia, public performance rights for most recorded music are managed by APRA AMCOS and PPCA. For convenience, these rights are offered to businesses through OneMusic Australia, which provides bundled licences tailored to different venues and uses (e.g. retail, hospitality, fitness, offices).
So even if you use a business-focused background music provider (rather than a personal Spotify plan), you’ll still typically need the appropriate OneMusic Australia licence for your premises and music use. If you only use royalty-free music (properly licensed), your licence needs may differ - more on that below.
What Licences Do Australian Businesses Usually Need For Background Music?
Most brick-and-mortar businesses that play recorded music to customers or staff will need a public performance licence. In practice, this is usually covered by a OneMusic licence. The licence type and fee depend on factors like your industry (retail vs hospitality), floor area, whether you have live performances or DJs, and how often you play music.
Here’s the general idea:
- Public performance of musical works and sound recordings requires permission. OneMusic Australia provides packaged licences on behalf of APRA AMCOS and PPCA.
- Different uses can attract different licence categories - e.g. background music, telephone on-hold music, fitness classes, live performances.
- A public performance licence generally doesn’t give you the right to copy, download, re-broadcast or stream music online; it’s about playing it at your premises to the public.
If you’re unsure which category applies, it’s worth seeking advice early. Getting the wrong licence (or none at all) can lead to backdated fees or claims for infringement.
What Audio Sources Can I Use In My Business?
There are several compliant ways to play music in your venue. The right option for you will depend on budget, control over playlists, and the experience you want to create.
1) Business Music Services (Commercial Use Streaming)
Commercial background music providers offer curated playlists and usage rights for business settings. Unlike a personal Spotify account, these services are designed for commercial use. You’ll still usually need an appropriate OneMusic licence for public performance at your premises, but the streaming source itself is authorised for business playback.
Check the provider’s terms to confirm they permit commercial public performance in Australia. If you expand or use multiple locations, confirm whether your plan covers each site.
2) Royalty-Free or Production Music Libraries
Some libraries sell or license tracks for commercial use in public spaces. If you go this route, review the licence carefully to confirm it covers your exact use (background music, number of locations, any edits to tracks, whether you can use the music in advertising, etc.).
If you’re buying or negotiating custom rights from a composer or library, a clear Copyright Licence Agreement helps set out what you can do with the music and avoids disputes later.
3) Live Music And DJs
Live performances are great for ambience and brand identity. You’ll still generally need public performance coverage via OneMusic. For performers you book directly, have a simple written agreement clarifying fees, set length, bump-in/out times, and responsibility for equipment. If your staff sometimes DJ, capture expectations in your Employment Contract and a short workplace music policy.
4) Radio Or Free-To-Air TV In Your Venue
Even if you’re just playing the radio or a TV channel in the background, public performance rights still apply. OneMusic licences usually have categories for broadcast sources. Keep in mind: the broadcast source’s licence does not automatically cover your public performance at your venue - that’s usually your responsibility as the business.
Common Scenarios - What’s Allowed, What’s Not?
“Can we just plug a phone into speakers and play a personal Spotify account?”
No. Personal accounts are for private listening and don’t authorise public performance in a business. This can breach both copyright and the streaming platform’s terms.
Usually yes. A business music service gives you a compliant source for playback. A OneMusic licence typically covers the separate right needed to publicly perform those tracks at your premises.
It depends. Playing music solely in a private staff-only area may be treated differently from playing it to the public. However, if staff areas are adjacent to public areas or music is audible to customers, you should assume public performance rules apply. When in doubt, check the licence category that aligns with your actual use.
“Can we stream playlists on our website or live stream our in-store audio?”
That’s a different set of rights (communication to the public online) and is not covered by standard background music arrangements. You’ll need additional rights and terms for online use, and should also ensure your site has Website Terms and Conditions and a Privacy Policy if you collect any personal information during the experience.
A Practical, Compliant Setup: Step-By-Step
To keep your business covered, consider this simple framework.
Step 1: Map How You Use Music
List where and how you play audio: shop floor background music, classes or scheduled sessions (e.g. a yoga flow soundtrack), telephone hold music, events, staff areas, broadcast TV, or live sets. The more accurate your map, the easier it is to pick the right licences and avoid paying for categories you don’t use.
Step 2: Choose A Compliant Music Source
- Pick a business music service that permits commercial use in Australia, or
- Use properly licensed royalty-free tracks, or
- Book live performers with suitable agreements.
If you’re licensing custom audio or commissioning a jingle, set permissions in writing with an IP Licence or a Copyright Licence Agreement.
Contact OneMusic Australia or review their licence categories relevant to your business type. Make sure you disclose your actual use (e.g. background music only vs classes vs live events) so the licence aligns with reality. Keep a copy of your licence and renewal dates in your compliance calendar.
Step 4: Set A Simple Workplace Music Policy
Most issues occur when well-meaning staff plug in a phone and start a personal playlist. A short policy can explain approved music sources, volume levels, and who’s responsible for managing accounts and renewals. You can incorporate this guidance into a broader Workplace Policy pack and your team’s onboarding materials.
Step 5: Capture Responsibilities In Staff Contracts
If particular roles involve curating music, managing a business music service account, or running in-store events, reflect those responsibilities in your Employment Contract and position descriptions. This helps with accountability and continuity if team members change.
Step 6: Keep Records And Review Annually
Maintain copies of your licence confirmations, provider terms, invoices and any composer/library agreements in one place. Review your setup each year - especially if your use changes (e.g. adding fitness classes, starting weekly live music, opening a second site). A quick annual check avoids accidental non-compliance.
How Playing Music Interacts With Other Legal Areas In Your Business
While music licensing is the main issue here, a few related legal areas commonly pop up for businesses that invest in their in-store experience.
Customer Data And In-Store Apps
If you offer guest Wi-Fi, run in-store song requests via QR codes, or operate a loyalty app, you’ll likely collect personal information. Make sure you’re transparent about how you collect and use that data with a clear Privacy Policy, and align your sign-up flows with Australian privacy requirements.
Events And Collaborations
If you collaborate with artists, brands or influencers for a launch night or in-store performance, set expectations in writing. For example, if an artist provides a unique soundscape for your brand, ensure you have the rights you need to use and re-use it through a Non-Disclosure Agreement during negotiations and a tailored licence when you finalise the arrangement.
Online Content And Promotions
When you film in-store content with music audible in the background, posting it online can trigger separate rights and platform takedowns. Keep your social team aligned with your licensing settings, and consider using cleared tracks specifically licensed for online promotion to avoid headaches. If your website hosts audio or video, have appropriate Website Terms and Conditions in place.
Fees vary based on your sector, floor space, the nature of your music use (background only vs classes or live music) and sometimes your trading hours. The aim isn’t to surprise you - it’s to make sure artists and rights holders are fairly paid for business use of their music. In practice, most small businesses find that once set up correctly, the annual fee is predictable and manageable.
It’s smart to budget for both parts of the equation:
- the cost of your compliant music source (e.g. a business music service or library licence), and
- your public performance licence.
What If I’ve Been Playing Music Without A Licence?
If you’ve been using a personal Spotify account or playing music publicly without the right licence, take proactive steps now. Move to a compliant source, contact OneMusic Australia to get onto the correct licence for your use, and implement a simple workplace policy so it doesn’t slip again.
If you receive a demand letter or infringement notice and you’re unsure how to respond, getting quick legal guidance can help you resolve it efficiently and set up a compliant process for the future.
Essential Documents And Policies To Support Your Music Setup
While licences handle the copyright side, a few short documents make day-to-day management smoother and reduce risk.
- Employment Contract: sets responsibilities if a role involves curating playlists, managing accounts or running in-store events. Use a robust Employment Contract that aligns with your operations.
- Workplace Policy: outlines permitted music sources, volume limits and escalation steps if equipment or logins change. A practical Workplace Policy helps teams follow the rules consistently.
- Copyright Licence Agreement: if you commission or license custom audio, this agreement clarifies what you can do with the music and for how long. See Copyright Licence Agreement.
- IP Licence: where you’re licensing broader creative content (e.g. soundscapes, jingles or branded audio), an IP Licence sets clear boundaries and usage rights.
- Privacy Policy: if you collect any personal information through Wi‑Fi sign-ups, apps or in-store requests, a compliant Privacy Policy is a must.
- Website Terms And Conditions: if your website hosts audio/video or interactive playlists, Website Terms and Conditions help set the rules for users.
- Non-Disclosure Agreement (NDA): use an NDA when discussing unreleased tracks or bespoke audio ideas with external creators or suppliers.
You won’t need every document in every case, but getting the core ones right (employment, policy and any licences for custom audio) can save time and prevent disputes.
Key Takeaways
- Playing music in your venue is a public performance - consumer streaming plans like a personal Spotify account aren’t authorised for business use.
- In Australia, most businesses need a OneMusic Australia public performance licence tailored to their music use (e.g. background, classes, live music).
- Choose a compliant audio source: a business music service, properly licensed royalty-free music, or live performances with clear agreements.
- Put simple guardrails in place - a short workplace music policy and clear responsibilities in your Employment Contract reduce day-to-day risk.
- If you commission or license custom audio, use clear permissions via an IP Licence or Copyright Licence Agreement.
- Review your setup annually and keep records of licences, provider terms and invoices to stay compliant as your business evolves.
If you’d like a consultation on setting up music legally for your business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
