An independent retailers association has just released a podcast warning shop owners about the complex and often misunderstood world of music licensing for stores.
The podcast reveals that many retailers are unaware they need a licence simply for playing background music in their shops.
The latest episode of High Street Matters, from the British Independent Retailers Association (Bira), explores the obligations around Performing Right Society (PRS) and Phonographic Performance Limited (PPL) music licensing, the consequences of non-compliance, and a royalty-free alternative that can save retailers costs.
’The Cost of Playing Music in Your Shop’ features Andrew Goodacre, CEO of Bira, Grant Thompson from Background Sounds and Mel Beard, chair of Health Stores UK.
Goodacre said: “Music licensing sits alongside business rates, energy costs and retail crime as yet another burden for independent retailers. Every saving matters, which is why it’s so important that retailers understand their obligations and know what alternatives are available to them.”
Thompson explained the licensing landscape is complex, with around 60 different tariffs from PRS and PPL depending on the type and size of business: “In the vast majority of cases, if you’re playing music in a commercial space, via whatever method - CD, Spotify, radio - you’re going to need a music licence to cover that. The costs are not easy for people to work out in the first instance.”
Background Sounds has been supporting almost 1,000 businesses across the UK with royalty-free music for five years, and Thompson explained that retailers caught playing music without a licence face a 50% premium on top of standard costs.
Beard shared her experience of navigating the music licensing landscape, which prompted her health food shops to explore royalty-free alternatives. She said: “It’s important that it’s something that you have on your checklist when you’re opening your shop.”
The podcast also explores how royalty-free music works differently from traditional licensing, with artists monetising their music through sync agreements rather than PRS and PPL registration. Background Sounds offers 67,000 tracks across 67 different playlists, updated twice a month, accessible via a streaming platform that works with tablets and sound systems.
Goodacre reminded retailers if they want to switch from an existing licence, they need to give 30 days’ notice, and emphasised the importance of understanding obligations around music in retail spaces.
Beard went on to highlight the importance of background music to the retail experience: “Shops are too quiet without it - it makes customers uncomfortable when you can hear a pin drop. It’s really important in lifestyle shops where people browse for a long time. It creates the right atmosphere.”
The podcast is available throughout May on the Bira website, where more resources and support for independent retailers can also be found.
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