The most important facts in brief
- The term PRS licence is colloquial: strictly speaking, the GEMA does not issue a licence, but rather levies a PRS for Music fee for the public performance of music subject to GEMA fees.
- GEMA-free music originates from creators who are not represented by GEMA. Therefore, no GEMA fees apply, which means savings on GEMA costs of up to 100 percent.
- The GEMA fee is recurrent annually and increases with floor space and number of locations. Rough guidance for 2026: retail up to 200 square metres around 220 euros per year, hospitality up to 150 square metres approximately 420 to 630 euros per year.
- Rule of thumb for the decision: Anyone who strictly needs well-known chart hits is better off with GEMA-liable music plus full service. Anyone focusing on atmosphere, legal certainty and budget is better off with GEMA-free music. Often, the combination is the most cost-effective option.
- sonicsense offers 30 royalty-free premium channels including a certificate and, upon request, music subject to GEMA fees with complete GEMA full service, including up to a 40 percent discount on GEMA tariffs where applicable.
GEMA licence, GEMA fee or GEMA-free? The terms clearly separated
In practice, many businesses look for a GEMA licence. The term has become common usage, but strictly speaking it is misleading: GEMA does not issue a licence in the true sense, but instead collects remuneration on behalf of the creators when you publicly and commercially play music subject to GEMA fees. Therefore, the correct term is PRS for Music fee. A genuine music licence, meaning the right to use a work, and the GEMA fee are two different things and should not be equated.
GEMA-free, on the other hand, means that the creators of a piece of music are not represented by GEMA. No GEMA fee is incurred for these tracks. The subtlety is important: GEMA-free does not automatically mean free of charge. The usage rights are acquired via specialised providers, usually as a predictable service fee, meaning that the variable, annually increasing GEMA fee is eliminated. What exactly is considered GEMA-free is explained in our introductory article on the subject, what GEMA-free music is. The overview shows which logical fallacies regarding this topic become particularly expensive: Most common GEMA mistakes for businesses.
Subject to GEMA fees or GEMA-free: the direct comparison
Both models make your business compliant for sound systems, but differ significantly in terms of cost, administration and scaling. The following comparison summarises the key points:
| Aspect | Music subject to GEMA fees (with GEMA fees) | GEMA-free music |
|---|---|---|
| Repertoire | Well-known chart and original hits | Professionally produced tracks by international artists, no well-known chart hits |
| Costs | Annual recurring GEMA fee, increasing with area and locations | Predictable service fee, no variable GEMA fee on top |
| Legal certainty | Only with correct registration and payment | End-to-end, with a certificate as proof |
| Administration | Registration, notifications and deadlines required | No GEMA administration fees |
| Scaling to multiple locations | Costs rise proportionally per location | Scales without proportionally increasing GEMA fees |
| Savings | Potentially up to 40 per cent discount via the full service | Up to 100 percent GEMA cost saving |
Our guide explores which music is actually considered GEMA-free and why its quality can rival that of well-known repertoire., What music is GEMA-free.
How much does GEMA really cost? Concrete figures for 2026
How much the GEMA fee is depends primarily on the sector, the area being played music in and the type of use. The tariffs are adjusted annually. The following values are a rough guide for 2026 and relate to background music:
| Type of operation | Area | GEMA fee (rough guide 2026) |
|---|---|---|
| retail, shop | up to 200 square metres | around €220 a year |
| Gastronomy, café, restaurant | up to 150 square metres | approximately 420 to 630 euros per year |
| Fitness studio | up to 300 square metres | approximately 635 to 970 euros per year, plus course music from around 0.56 euros per course hour |
| doctor's surgery, waiting room | per room | a few euros per year and room |
When playing sound recordings, remuneration from the sister organisation GVL for related rights is also added. The GEMA fee is capped at 3.75 percent of total revenue, but this upper limit must be actively applied for and proven. A detailed list of current rates can be found in our article on the GEMA fees 2026 in detail.
Calculating GEMA-free: when the switch is worthwhile
The crucial difference lies not only in the amount, but in the structure of the costs. The GEMA fee is a variable, annually recurring item that grows with every additional area and every further location. GEMA-free music, on the other hand, runs on a predictable service fee, without any GEMA fee on top.
As a rough guide, a restaurant measuring 150 square metres pays between 420 and 630 euros a year in GEMA fees. Anyone operating two further locations of the same size will quickly rack up between 1,260 and 1,890 euros annually for GEMA alone, year after year and with a tendency to rise. If the business switches completely to GEMA-free music, this recurring GEMA fee is eliminated, which means up to 100 per cent savings on GEMA costs while maintaining the same quality of music. The larger the floor space and the more locations there are, the greater the impact of this effect.
Switching is therefore particularly worthwhile if you are sonorising large areas, operate multiple locations or do not need any well-known chart hits anyway. If, on the other hand, your concept strictly requires well-known original music, the GEMA-liable option remains the right choice, ideally with a full service and, where applicable, a discount.
Which solution suits your business?
sonicsense is the expert for all things related to business music: 30 PRS-free premium channels, upon request music subject to PRS plus complete PRS full service. Get a no-obligation calculation of your potential savings.
Request a consultation nowDecision support: when subject to GEMA fees, when GEMA-free, when to combine
Whether GEMA-liable music, GEMA-free channels or a combination are the best choice depends primarily on the role that music plays in your business. The following three scenarios help with classification.
When GEMA-licensed music is worth it
If well-known chart hits and original tracks are an integral part of your concept, there is no way around GEMA-licensable music – for instance in bars, clubs, at events, or when a brand playlist purposely uses original tracks. To ensure this is legally compliant and as cost-effective as possible, sonicsense can, upon request, handle the complete GEMA administration from registration to reporting, and secure you up to 40 per cent discount on GEMA tariffs where applicable.
When royalty-free music is the better choice
If you are primarily concerned with a harmonious atmosphere, legal certainty without administrative hassle and predictable costs, royalty-free music is generally superior. This applies particularly to businesses with multiple locations, large areas, or where the specific tracks are of secondary importance—such as in retail, hospitality, wellness and fitness areas, surgeries and waiting rooms. This is where royalty-free music fully plays to its cost advantage.
When the combination is cheapest
In many businesses, you operate most cost-effectively with a combination of GEMA-liable and GEMA-free music: well-known tracks specifically where they are truly needed, GEMA-free channels everywhere else. This keeps the GEMA fee low without entirely forgoing well-known music. You can see which channels and products are suitable for this in the overview on the royalty-free music for businesses.
| Your situation | Recommendation |
|---|---|
| Well-known chart hits are part of the concept (bar, club, event) | GEMA-licensed music with full service |
| Focus on ambient atmosphere, legal certainty and budget | Royalty-free music with certificate |
| Multiple locations or large areas | royalty-free music, because of scaling |
| Partly familiar titles, partly pure atmosphere | combination of GEMA-liable and GEMA-free music |
Caution with streaming services and AI music
Two supposed shortcuts regularly cost businesses money. Firstly, private streaming services such as Spotify or Apple Music are licensed exclusively for private use; they are not permitted for commercial playback in a business and can lead to claims for back-payments. Secondly, the legal status of AI-generated music is unclear: if copyright-protected works were used during the AI's training, GEMA fees may subsequently apply to the output. You can avoid both risks by using certified GEMA-free music whose status is demonstrably documented. Our guide on the subject shows what you should look out for, How to recognise royalty-free music.
Frequently Asked Questions about GEMA licence and GEMA-free
Do I need a GEMA licence for music in my shop?
As soon as you play music subject to GEMA fees publicly and commercially, a GEMA fee becomes due, which many colloquially call a GEMA licence. If you use exclusively royalty-free music, this fee does not apply because no works represented by GEMA are used.
What is the difference between a GEMA licence and GEMA-free music?
The so-called GEMA licence is the GEMA fee for the public performance of music subject to GEMA fees, in other words, well-known chart hits. GEMA-free music comes from creators who are not represented by GEMA. As a result, no GEMA fees apply, but they are not well-known chart hits, rather professionally produced tracks by international artists.
Is GEMA-free music really free?
No. Royalty-free simply means that no GEMA fees apply. The usage rights are still acquired, usually as a predictable service fee via a professional provider. The advantage lies in the calculable costs and the elimination of the variable, annually increasing GEMA fee.
When is royalty-free music worthwhile compared to the GEMA fee?
Especially for large areas, multiple locations and places where well-known chart hits are not strictly necessary. Since the GEMA fee increases with the area and number of locations, whereas royalty-free music operates on a predictable service fee, the advantage grows with the size of the business. If your concept requires well-known original music, the GEMA-liable option remains the right choice.
Can I combine music subject to GEMA and GEMA-free music?
Yes, and often that is precisely the most cost-effective solution. You use well-known, GEMA-liable tracks selectively where they are really needed, and use GEMA-free channels everywhere else. This keeps the GEMA fee low without having to do without well-known music entirely.
Does Sonicsense also offer music that requires GEMA licensing?
Yes. If you consciously wish to use well-known music that is subject to GEMA fees, sonicsense provides it and, if desired, handles the complete GEMA full service, including registration and administration, potentially with up to 40 percent discount on GEMA tariffs.
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