Do You Need a License to Play Music in Your Shop?

Thinking about playing music in your shop? Whether it’s background tunes to boost the mood or a radio station for your staff, UK law is clear: if you play music in a commercial setting, you probably need a licence. But the rules are more complex than most owners realise, and the risks for getting it wrong—fines, legal action, or even a sudden silence—are real. This comprehensive guide cuts through the confusion, explains exactly when you need a licence, what it costs, and how to stay on the right side of the law as a UK retailer.

Playing music in your shop isn’t just about creating a pleasant atmosphere or boosting sales – it’s also a legal matter. UK copyright law, specifically the Copyright, Designs and Patents Act 1988, protects the rights of music creators, composers, and performers. When you play music in a public or commercial space, you’re deemed to be communicating that work to the public, which requires permission from the copyright holders.

This is where music licences come in. In the UK, two main collecting societies—PPL (Phonographic Performance Limited) and PRS for Music (Performing Right Society)—manage the rights and collect fees on behalf of music creators and record companies. If you play music in your shop, whether it’s from the radio, streaming services, or CDs, you’ll almost always need a licence from both organisations. The only exceptions are very rare, and most UK shops won’t qualify for them.

It’s a common misconception among small business owners that paying for a streaming service (like Spotify or Apple Music) covers public performance. It doesn’t. Consumer streaming subscriptions are strictly personal and home use only. Playing them in a retail setting without a proper licence still breaches copyright law, regardless of your intent or the source of the music.

Virtually any way you play music in your shop—live or recorded—will require a licence. This includes background music for customers, staff areas, live performances, or even playing the radio. The law does not distinguish between different sources: CDs, vinyl, radio, TV music channels, downloaded files, or streaming services all count.

You might think that using royalty-free music or music you’ve purchased on CD avoids licensing, but unless the music is genuinely copyright-free (and you can prove it), you’ll likely still need a licence. The vast majority of tracks available commercially, including those used on radio and popular playlists, are protected by copyright and covered by the PRS and PPL repertoire.

There are some very limited exceptions, such as shops where only staff can hear the music in a private area, but as soon as music is audible to the public, a licence is required. Even playing music for employees in a back office can need a licence, depending on the setting and whether it’s considered a workspace rather than a truly private space.

• Playing background music for customers on the shop floor
• Using the radio or TV with music content in a public area
• Hosting live music performances or DJ sets
• Allowing staff to listen to music in shared workspaces
• Playing music at in-store events or product launches

The UK’s music licensing landscape can seem confusing, but it’s built on the distinction between two sets of rights. PRS for Music collects royalties for the songwriters, composers, and publishers for the musical composition and lyrics. PPL collects royalties for the record labels and performers for the actual recording. Most music you’ll want to play in your shop is covered by both sets of rights, so you usually need both licences.

Since 2018, PRS and PPL have joined forces under a single brand—PPL PRS Ltd—and offer TheMusicLicence, which is a one-stop solution for businesses. However, the fees are still calculated based on both PRS and PPL tariffs, and you must ensure your payment covers all the uses you intend. TheMusicLicence makes the process simpler, but it doesn’t eliminate your legal responsibility to have the appropriate permissions.

Importantly, certain uses may require additional permissions—such as playing music videos (which may involve video rights), hosting live music, or using music in advertising. Always check with PPL PRS if your use case is unusual. If you only play music you’ve created yourself, and you own all rights, you may not need a licence, but this is very rare in a retail context.

• PRS covers composers, songwriters, and publishers
• PPL covers record companies and performers
• TheMusicLicence is the combined, simplified product
• Fees depend on shop size, type of music, and usage
• Don’t assume you’re covered if you only pay one

Licence costs depend on several factors, including the size of your shop, the type of music played, how it’s played (background vs. live), and opening hours. For most small shops, the annual cost is relatively modest, but it’s essential to budget for it as an ongoing business expense.

As of 2026, TheMusicLicence for a small shop (up to 100 square metres, playing background music only) typically ranges from £150 to £250 per year. If your shop is larger, or you play music in multiple areas (e.g., shop floor and staff room), costs will increase. Live music or DJ performances will also attract higher fees, as will using music videos or hosting ticketed events.

There is no flat fee: each business is assessed individually, and tariffs are published on the PPL PRS website. For an exact quote, you must provide details of your shop’s size, number of areas where music is played, hours of music, and the way the music is used. Failing to disclose accurate information can result in backdated charges or enforcement action.

Applying for a music licence is straightforward, but you must ensure all details are accurate and up to date. Contact PPL PRS Ltd directly through their website or by phone. They will ask a series of questions about your premises, music usage, and shop opening hours to determine your tariff.

If you operate multiple branches, you may need a group licence. If you take over an existing premises that already has a licence, you must update the details to reflect the new ownership—licences are not automatically transferable. Payment is usually annual, but monthly instalments may be available for some businesses.

You are legally required to display your TheMusicLicence certificate on the premises. This demonstrates compliance and can deter enforcement visits. Keep your records updated if your shop layout, size, or music usage changes, as these factors affect your licence obligations and cost.

Playing music in your shop without the proper licence is a breach of copyright law. Enforcement officers from PPL PRS regularly visit retail premises, and they have the right to demand proof of licensing. If you’re found playing music without a licence, you could face immediate demands for payment, legal action, and substantial fines.

Typical penalties include payment of all outstanding licence fees (often backdated to when you first opened), legal costs, and in some cases, damages. In rare but serious cases, courts can issue injunctions preventing you from playing any music at all, which can instantly change the atmosphere in your shop and affect customer experience.

It’s a myth that enforcement only targets large chains. Small, independent shops are frequently visited, and PPL PRS have increased their compliance activity in recent years. Some business insurance policies may even be invalidated if you’re found breaking copyright law, potentially exposing you to further risks.

• Immediate payment demands for unpaid licence fees
• Potential backdating of charges to your opening date
• Legal action and court injunctions
• Damage to your reputation and customer experience
• Invalidated insurance in some cases

Many shop owners are caught out by common myths about music licensing. One of the biggest is that paying for a personal streaming service or radio licence covers public performance. In reality, consumer services (including Spotify, Apple Music, Amazon Music) explicitly prohibit business use in their terms and conditions. Playing a radio in your shop still requires TheMusicLicence, even though the BBC or commercial station pays for broadcasting rights.

Another misconception is that small shops can fly under the radar. PPL PRS actively monitor businesses of all sizes, and being small is not an exemption. Similarly, some believe that playing music only for staff in a backroom is allowed—if this area is a workspace, you still need a licence.

Finally, using so-called 'royalty-free' playlists often doesn’t exempt you unless you have explicit, documented permission for commercial use from all rights holders. Most 'royalty-free' music online is not genuinely copyright-free—it simply means you pay once for a specific limited use. Always check the fine print.

• Personal streaming subscriptions are not valid for business use
• A TV licence does not replace TheMusicLicence for shop music
• Royalty-free does not always mean licence-free for commercial settings
• All shop sizes must comply—no minimum threshold

Some shop owners wonder if they can avoid music licensing fees altogether. In practice, genuine alternatives are very limited. The only way to play music legally without a licence is to use music that is entirely exempt from copyright—in other words, music in the public domain, or music you have created yourself and not registered with any rights organisation.

There are specialist providers offering so-called copyright-free or 'licence-included' music for business use. These services provide tracks where all rights holders have been paid directly by the provider, and you pay a flat fee for unlimited use. Providers include Soundtrack Your Brand (for business), Ambie, or similar commercial background music services. However, you must check that their licences fully cover UK public performance rights, and they should provide documentation in case of a compliance check.

Bear in mind these libraries tend to have a much more limited selection than mainstream music, and the atmosphere may not be the same. For most UK shops, the practicality and brand impact of using mainstream music usually outweighs the relatively modest cost of a full PRS/PPL licence.

• Use only truly public domain or your own original music
• Consider commercial background music services with included licensing
• Check that any provider covers UK PRS and PPL rights
• Retain documentation to show compliance if inspected

If you operate more than one shop, or run a chain or franchise, licensing can become more complicated. Each premises where music is played usually needs its own licence, unless you negotiate a group or multi-site agreement directly with PPL PRS. Franchisors are not automatically responsible for franchisee compliance—each shop owner must secure their own permission unless your agreement states otherwise.

Market stalls, pop-ups, or shared retail spaces also require a licence if music is played. If you’re in a shared space (like a covered market or shopping centre), clarify with the landlord or management company who is responsible for music licensing. If in doubt, assume you need your own licence and check in writing.

If your shop uses music in an unconventional way—such as for exercise classes, workshops, or as part of a demonstration—additional or different tariffs may apply. Always disclose your full range of uses when applying, as under-declaring can result in backdated charges or enforcement action later.

• Each physical location typically needs its own licence
• Landlords or market operators may or may not cover public space music
• Franchisees are usually individually responsible for compliance
• Special activities (exercise, dance, workshops) may require different tariffs