You have a Spotify Premium subscription and a Bluetooth speaker behind the counter. It seems harmless to hit play during business hours. But playing Spotify in a commercial space violates Spotify's Terms of Service and exposes you to federal copyright liability of $750 to $150,000 per song.

This page explains exactly why, what the statute says, and the two practical alternatives that keep you legal for less than the cost of a single demand-letter settlement.

Last updated April 2026

The short answer

No. Spotify's Terms of Service explicitly prohibit commercial use. Playing Spotify, Apple Music, YouTube Music, Amazon Music, or any other consumer streaming service in a business open to the public is an unlicensed public performance under 17 USC 106(4). It does not matter that you pay for a Premium subscription. The consumer license covers personal, non-commercial listening only. If ASCAP, BMI, or SESAC discovers you are playing consumer streams commercially, you face statutory damages of $750 to $150,000 per song under 17 USC 504(c).

Why — the actual statute

Federal copyright law gives copyright holders the exclusive right to perform their works publicly (17 USC 106(4)). Playing music in a restaurant, retail store, salon, gym, or any other business open to the public counts as a "public performance" under 17 USC 101.

There is one major exemption: the "homestyle exemption" in 17 USC 110(5). But it only covers music received from an FCC-licensed broadcast source — over-the-air radio, broadcast TV, or basic cable. Consumer streaming services like Spotify are not FCC-licensed broadcasts, so the homestyle exemption does not apply to them at all.

On top of the federal statute, Spotify's own Terms of Service state that the service is "for personal, non-commercial use only." If Spotify terminates your account for commercial use, you also lose access to all your playlists and saved music.

The math

PRO licenses (ASCAP + BMI + SESAC): Roughly $1–$2 per day per PRO. Total for all three: approximately $1,100–$2,200 per year for a small business.

Commercial background music service: $25–$50 per month ($300–$600 per year). Bundles all PRO licensing into the subscription. No separate ASCAP, BMI, or SESAC paperwork.

Risk of doing nothing: $750–$150,000 per song in statutory damages (17 USC 504(c)). A typical demand letter from ASCAP settles for $3,000–$10,000. One bad day with a PRO auditor in your lobby costs more than a decade of commercial background music.

What to do next

  1. Run the free self-check to confirm your exact situation — establishment type, square footage, speaker count, and music source all matter.
  2. Fill out a speaker inventory worksheet to document your setup. If you later claim the homestyle exemption for broadcast radio, this is your evidence.
  3. If you have a demand letter in hand, use a response template to reply correctly before the deadline. The Music Licensing Audit Kit includes three templates for the most common scenarios.
  4. Subscribe to a commercial background music service that bundles ASCAP, BMI, and SESAC licensing. This is the simplest fix for any business currently playing Spotify. From $25/month, you get fully licensed music, no PRO paperwork, and zero risk.

Run the full self-check

Not sure whether you need a license? The free self-check tool walks you through 7 questions and tells you exactly where your business stands — exempt, licensed, or at risk.

Run the free self-check 7 questions, ~3 minutes, no signup Get licensed background music From $25/mo · bundles all PRO licensing Get the Music Licensing Audit Kit — $19 Speaker worksheet + demand letter templates + statute reference

Source text

17 USC 110(5)(B) — the "Fairness in Music Licensing Act" exemption:

"...a communication of a transmission embodying a performance or display of a work by the public reception of the transmission on a single receiving apparatus of a kind commonly used in private homes, unless— (i) a direct charge is made to see or hear the transmission; or (ii) the transmission thus received is further transmitted to the public..."

The exemption applies only to "a transmission embodying a performance" received via broadcast, cable, or satellite. Consumer streaming (Spotify, Apple Music, YouTube) is not a "transmission" from an FCC-licensed broadcaster — it is an on-demand digital audio stream initiated by the user. The exemption does not cover it.

Full statute: 17 USC 110 at Cornell LII

Not legal advice. This page applies publicly available statutes and Spotify's published Terms of Service. It does not substitute for a licensed attorney or compliance professional. Before acting, confirm with the relevant PRO or a licensed professional in your jurisdiction. Laws and terms of service change — this page reflects rules as of April 2026. The site author is not responsible for decisions made based on this content.
Free self-check tool Audit kit — $19 ASCAP license for cafes ASCAP demand letter response Best background music services