Soundtrack estimates that improper music streaming by US businesses costs the music industry $1.4 billion in royalties each year. Its study found that 79% of businesses that play music in-store use consumer streaming services without commercial licenses.
The business streaming service surveyed 1,525 people representing nearly 15,000 US businesses. Its findings include:
- 97% of businesses play music in-store, while 19% follow commercial music guidelines.
- 78% of respondents believe their music use complies with the law.
- 58% believe they may stream personal accounts in their businesses.
Businesses can use a commercially licensed service or obtain public performance licenses from performing rights organizations (PROs) such as ASCAP, BMI, GMR and SESAC. Those licenses do not authorize the commercial use of personal streaming accounts.
Soundtrack founder and CEO Ola Sars attributed the compliance gap primarily to confusion about licensing requirements. The company has announced a partnership with SESAC to expand its licensed catalog for businesses, adding to its existing deals with ASCAP, BMI and GMR.
