Debunking Spotify Myths in Restaurants: What You Need to Know

In today's colloquial language, the myths we encounter are far from the original meaning of the word. They don't include supernatural beings or early events but are purely based on beliefs. In the world of restaurant entertainment, there are also various myths nowadays, which, despite being based on false information, convince many of their truthfulness. To ensure that restaurants don't stray onto the path led by misconceptions, we decided to debunk the most common beliefs related to the industry.

Public use of Spotify

Playing background music through various services is one of the biggest mysteries in the restaurant industry because just when you think you've grasped it, you hear something entirely different. With the digital leap, consumers have access to a vast array of services to search for and play music. In the business world, this causes a lot of confusion. Using the same music service to play songs from both personal headphones and the company's speakers may seem like a logical solution. How many of us have read the fine print of terms and conditions instead of scrolling straight to the bottom of the page to accept them? We won't admit to anything—at least not out loud.

However, the saying "reading pays off" applies in this situation. Spotify's terms of use state that the service is intended solely for personal use.

Playing Spotify publicly in business premises such as restaurants, bars, or cafes is prohibited.

The same restriction is encountered in the terms of use of many other popular streaming services; in addition to Spotify, YouTube Music, Apple Music, Deezer, and Amazon Music prohibit the commercial or public use of the service.

Why does the service matter?

The use of a music service only for its intended purpose is important both from a legal standpoint and for the entire industry. Like everyone else, music creators and artists are entitled to compensation for their work. Personal-use-oriented music services do not include compensation proportionate to a larger audience; logically, the more listeners, the more musicians earn compensation for their work.

For example, playing Spotify for 50 customers in a restaurant does not align with the intended compensation envisioned for such usage. The audience listening to Spotify in their own cars or headphones is quantitatively different from that in a restaurant. The amount of compensation depends on the specific music service being used, as different services have their own payout rules. Background music played through Feelment is subject to copyright payments based on user-specific data. On the other hand, Spotify continues to use the much-criticized pro rata payment model, where the owners of the most-listened-to songs receive the largest share of the paid compensation.

To play music, a business also needs a background music license

The cost of the license obtained from GT Musiikkiluvat is determined based on the number of customer seats in the restaurant industry - so the size of the audience really matters. Music is a part of culture, experiences, and well-being; and to continue enjoying music in the future, industry creators need to receive the compensation they deserve. More information about the transmission of music license fees can be found on the Kuulokanava blog on the musiikkiluvat.fi website.

So where can one play music from?

It's understandable that those scrolling through terms of use might accidentally stray into unlawful territory and start playing the company's music through Spotify. Choosing the right background music is crucial for business sales, and that's why playing radio or royalty-free music is not enticing. So, where can one legally play music? The answer is simple: from a background music service designed for business use. Feelment's background music service also allows the import of custom playlists from Spotify. You don't have to completely abandon your favorite playlists; instead, you can transfer them to Feelment and let your customers enjoy them. This way, music creators and producers also receive the compensation they deserve. Check out more about the benefits of the background music service in our previous post.

Playing Spotify, YouTube, and other music services designed for consumers in a company's premises is therefore prohibited. Reading enlightens, and the mystery is solved.