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Music licence UK: what it is, who needs one and what it costs

Everything a UK business needs to know about the music licence — what it is, who needs one, what it costs, and how not to overpay.

If your business plays music where customers or staff can hear it, you almost certainly need a music licence. This guide explains, in plain English, what a music licence is in the UK, who needs one, what it costs and — importantly — how to make sure you aren’t paying more than you should.

What is a music licence?

Playing commercially released music in public — from the radio, TV, a streaming service or live performers — uses work that belongs to other people: the songwriters and publishers who wrote it, and the record labels and performers who recorded it. A music licence is the permission that lets your business play that music legally, with the fees passed back to those rights holders.

TheMusicLicence: PPL and PRS combined

In the UK most businesses need permission from two organisations — PRS for Music (for the songwriting) and PPL (for the recording). Since 2018 these are combined into a single licence, TheMusicLicence, issued by their joint venture PPL PRS Ltd. So in practice one licence covers both.

Does my business need a music licence?

If you play music in customer areas or for staff — in a shop, café, restaurant, salon, gym, office, warehouse or showroom — the answer is usually yes. There are narrow exceptions (for example genuinely royalty-free or specifically-licensed music), but they’re the exception rather than the rule. Playing music without the appropriate licence can lead to enforcement action.

How much does a music licence cost?

There’s no flat fee. The cost is calculated from your specific premises and how you use music — the customer-audible floor area, whether it’s background music or live/DJ/events, your opening hours and the number of sites. A small shop might pay a few hundred pounds a year; the largest commercial users can be billed several thousand.

Why so many businesses overpay

Because the fee depends on so many inputs, small inaccuracies quietly inflate bills — storerooms counted as customer areas, background music billed as live entertainment, or licences never re-assessed after a refit or downsizing. The licensing body won’t proactively correct these for you, so the responsibility to check falls on the business.

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What’s the difference between PPL and PRS?

PRS for Music collects for the people who wrote and published the song; PPL collects for the record label and performers who made the recording. They’re different rights holders, so most businesses need both — which is why they’re combined into a single licence.

Can I play Spotify or Apple Music in my business?

No. Personal Spotify and Apple Music subscriptions are licensed for personal use only and their terms don’t allow business use. To play music to customers or staff you need a commercial music source and TheMusicLicence.

Do I need a licence to play the radio at work?

Usually yes. Playing the radio where customers or staff can hear it is a public performance of the music it broadcasts, so it generally needs TheMusicLicence — separate from any TV Licence.

What is the 50% surcharge?

If you played music before getting licensed, PRS charges a higher rate — standard plus 50% — for the first year only, and PPL applies a similar 50% surcharge. It should drop off after year one; if it hasn’t, that’s an overcharge.

What happens if I play music without a licence?

Playing music without the appropriate licence infringes copyright and can lead to enforcement action, and you can be liable for up to six years of prior unlicensed use. Arranging the licence proactively avoids that position.

Making sure you’re not overpaying

The goal isn’t to avoid a licence you genuinely need — it’s to make sure you’re correctly licensed and on the lowest compliant tariff, so you’re covered without overpaying. We’re an independent consultancy (not affiliated with PPL PRS Ltd, PPL or PRS for Music); if you’d like a second opinion, send us your invoices and we’ll review them for free — no savings, no fee.

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This guide is general information, not legal advice, and MLC is an independent consultancy — not affiliated with PPL PRS Ltd, PRS for Music or PPL.