If your business plays music – whether through the radio, streaming services, or even background TV – you might be required to obtain a music licence.
In Australia, playing music in a commercial setting is considered a public performance, which is protected under copyright law. To legally play music, businesses must secure a licence from OneMusic Australia, a joint initiative of APRA AMCOS and PPCA. This single licence simplifies the process by covering the majority of the world’s music catalogue.
Failure to obtain a proper licence can lead to significant legal and financial consequences. OneMusic Australia monitors music usage across various platforms, including radio airplay, streaming services, and public performances, to ensure that royalties are distributed to the rightful creators.
According to a recent The Age article, OneMusic Australia collected $132 million from businesses last year on behalf of copyright holders. Catherine Giuliano, director of OneMusic Australia, has seen references to her organisation as the “music mafia” online, telling The Age: “We’re trying to educate because when we go to a business that has never heard of us, you know, it can be scary. [But] our job is to defend our members, our music creators’ rights.”
The same article highlighted how some businesses were questioning if it was worth paying the licence fees. Jan Gawel, chief executive of Hair & Beauty Australia, was quoted by The Age as saying; “Most businesses already pay for music via streaming services..it begins to feel like double-dipping.”
You can read more here.
So, what about other major retailers?
We’ve shared a blog article in the past on the major supermarkets targeted for anti-competitive behaviour (read more here) as well as their pricing strategies being in the spotlight, particularly in a “cost of living” crisis.
Some business experts have suggested one reason grocery prices have been hiked up is due to music licensing fees.
Coles and Woolworths invest heavily in in-store music as part of their branding strategy, even operating their own radio stations. These investments not only enhance the shopping experience but also ensure compliance with copyright laws. In contrast, Aldi opts out of in-store music to reduce costs, saving millions per year, highlighting the financial implications of music licensing.
You can read more on the major supermarkets and music licensing here.
Music Licence Fees
Licence fees vary based on several factors, including the size of your business and how you play the music:
- Small businesses: Fees can start as low as $97.72 per year.
- Large venues or chains: Fees can exceed $6,000 annually.
Stores like Coles and Woolworths can pay upwards of $6 million per year due to the number of stores they operate.
OneMusic Australia offers over 20 tailored licence categories to suit various business types, from cafes and gyms to retail stores and government offices. Each licence is designed to match the specific music usage needs of your business.
How to Stay Compliant
- Assess Your Music Usage: Determine how and where music is played in your business.
- Select the Appropriate Licence: Use OneMusic Australia’s licence selection tool to find the right fit.
- Apply and Pay: Obtain your licence and ensure timely renewal to maintain compliance.
Remember, securing a music licence not only keeps you on the right side of the law but also supports the artists and creators whose work enhances your business environment.
Did you know, we offered a Licence Agreement contract template in our online store?
If you are a creative who wants to monetise your intellectual property by licensing it to another party, this Licence Agreement template is a great place to start. Intellectual property broadly includes copyright, trademarks, designs and patents. The creative industry primarily deals with copyright. Copyright protects various kinds of creative work including music, sound recordings, photography, film, artwork, literary work, design drawings, plays, and software. Click to purchase here.
