Widespread Misuse of Music in Businesses Leading to Billion Dollar Losses

Published February 1, 2024

It has come to light that an overwhelming majority of small and medium-sized businesses across the United States are improperly using personal streaming services to play music for their customers. This common practice has major financial implications, costing the music industry a hefty sum of approximately $1.38 billion annually.

The Impact of Music Licensing Misunderstanding

A startling 78% of US small to midsize businesses are reportedly engaging in the incorrect use of consumer streaming platforms for commercial purposes. Instances like the Venetian hotel in Las Vegas, which faced a $264 million lawsuit for such practices, highlight the widespread disregard for music rights and the resulting financial damage to the music industry.

Legal Music Usage in Business Environments

While music enhances customer experiences and potentially boosts sales for businesses, it also carries the responsibility of proper licensing. Every piece of music played requires authorization from copyright owners, something many businesses overlook, leading to potential legal problems and hefty fines.

The High Price of Copyright Infringement

When businesses fail to pay for the right licenses, it's not just about facing legal consequences; it also means songwriters and artists aren't getting paid for their work. The price of ignoring copyright laws can range dramatically, with some establishments having to pay tens of thousands of dollars for each act of infringement.

Industry Must Educate on Proper Licensing

There's a pressing need for an industry-wide educational campaign to guide businesses toward legally compliant music usage. The goal is to protect the income of music creators and ensure businesses are well-informed to avoid the high costs associated with noncompliance.

Securing a Fair Compensation for Creators

Music services that offer legal licensing options, like Soundtrack Your Brand, are available to combat this misuse. Such services allow businesses to legally stream a vast library of music and ensure that creators receive fair compensation.

The Importance of Clarity and Education

Ultimately, the misuse of music in commercial settings stems from a lack of clarity and knowledge. Improved communication and education can help safeguard both the rights of creators and the legal operations of businesses, preventing further financial losses in the music industry.

music, licensing, business