Music license for restaurants - What license do I need and why

Background music is one of the restaurant's key elements, contributing to the atmosphere, coziness, and additional sales. Playing music in a public place understandably requires a license, as music creators deserve their rightful compensation. But where is the license for playing background music obtained from? And what else should a restaurant consider when playing music? We gathered information by asking Timo Ahokanto, Sales Director of GT Musiikkiluvat Oy, owned by Teosto and Gramex.

Are your music licences in order?

Those who have worked in the restaurant industry have surely encountered this question several times. Although handling licensing matters may feel frustrating amidst the hustle, they serve important purposes. Thanks to music licenses, music creators such as composers, lyricists, performers, and producers receive the copyright royalties they deserve.

When Teosto and Gramex-represented music plays on a company's premises, the necessary music license must be obtained. The cost of the music license is influenced by factors such as the company's industry and the audience for background music—meaning the number of seating places for restaurants. The license can be purchased for just one or two months, providing flexibility for seasonal establishments. Additionally, music licenses are eligible for tax deductions as part of the company's expenses.

"The billing for the use of music always begins from the moment the music usage begins. So, if the music license has not been obtained, it can still be purchased, but it must always be activated from the moment the restaurant starts its operations. Therefore, it's advisable to activate the license from the very beginning to avoid being surprised by the amount of the first invoice," says Timo.

Music licences directly from the internet

Purchasing the necessary music license for playing background music is easily done with a few clicks from the GT Musiikkiluvat online store. By selecting restaurants, cafes, and pubs from the industry list, you can see all the license options suitable for your business in one go.

When acquiring a music license, it's good to check whether one license is sufficient or if you might need multiple licenses. For example, if a restaurant hosts DJ nights, a separate license is required for this, either arranged by the restaurant or the DJ.

"If a restaurant plays music on the outdoor terrace during the summer season, it's enough to update the information about the higher seating capacity than in the winter season for the summer period. In this case, a separate license for background music in outdoor areas is not needed. Updating the information can be done either through the Musiikkiluvat MyLicence service or by contacting Musiikkiluvat customer service," Timo explains.

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Assistance in choosing the right license can be found, for example, in this article. 

Why does it matter where I play my music from?

When the music license is in order, the only thing left is to actually play the background music – just press play. But where? One of the biggest challenges in the background music world is the uncertainty about which services a business can use to play music. Although playing background music through services like Spotify or YouTube Music might seem tempting, it is against the terms of use of these services to use music for public playback. You can read more about this topic in our previous post.

"A background music service designed for professional use helps a business find the right sound environment and frees up time for the actual business operations. Thanks to the background music service, playing music is not random; the playlists are specifically designed to support the business's brand," summarizes Musiikkiluvat.

A professionally designed background music service pays for itself through the benefits it brings.

For example, with the Feelment service, you get access to features that you won't find in other services. Playlists designed for restaurants, a location-based music search function, daily phone support, and remote music management are things you won't get at the price of Spotify. Not convinced? Check out here 5 reasons to invest in a music service.