The right background music is crucial for the ambience in any restaurant. However, those who do not take a legally compliant approach to Spotify in the catering industry quickly risk high additional payments and legal trouble.
The most important facts in brief
- Spotify is forbidden: Spotify and other private streaming services are expressly prohibited for commercial premises - even with a premium subscription.
- 100 % Control surcharge: In the case of unlicensed public performance, GEMA may levy a control surcharge of 100 per cent on the regular tariff.
- B2B music services: Specialised B2B music services offer legal security as well as functions such as multi-zone control and offline playback guarantees.
- Save GEMA-free: By using GEMA-free music, GEMA fees can be reduced by up to 100 per cent.
Can you play Spotify in restaurants and bars?
The streaming provider provides a clear answer in its own guidelines. According to the official Spotify terms of use, the service is intended exclusively for personal and non-commercial use. This means that public streaming in a restaurant, bar, café or hotel is strictly prohibited. Even a paid premium subscription does not change this - it only removes ad breaks for private users, but does not grant any commercial performance rights.
The background to this strict separation is copyright law. When music is played in a publicly accessible space, the legislator speaks of a public performance. The relevant licences must be acquired for such use so that artists and rights holders are fairly remunerated. Private streaming platforms are not authorised to make their music available for public performance; their fees do not include the specific remuneration for public performance.
Risks and financial consequences for restaurateurs
Anyone who violates these regulations and plays unlicensed music in a commercial setting runs a considerable financial risk. In Germany, GEMA is responsible for protecting the rights of composers and lyricists. If an inspection reveals that music is being played in public without the appropriate licence, there is a risk of severe penalties.
According to established case law, it is recognised that GEMA may demand a flat-rate control surcharge for unlicensed performances of protected works. This amounts to 100 per cent of the normal tariff. This doubled tariff fee acts as compensation and is intended to encourage users to properly register musical works in advance. In addition to substantial additional payments, warning costs can also be incurred, which can put a noticeable strain on the budget of a catering business.
Do not rely on unlicensed music use in your company remaining undetected. GEMA carries out regular checks - even unannounced. Switch to a legally compliant alternative in good time before you receive an additional demand.
Legal music solutions for your business
To be on the safe side legally and at the same time create a harmonious sound atmosphere, businesses need systems that have been specially developed for commercial use. In contrast to private apps, these services cover the necessary licence obligations and offer functions that are actually required in the catering environment.
What distinguishes B2B music services from private apps
A professional music system goes far beyond playing playlists. Relevant functions for catering establishments are
- Multi-zone sound reinforcement: Quiet sound ambience in the lounge area, more dynamic rhythms at the bar - centrally controlled.
- Offline playback guarantee: The background music continues to play reliably even if the Internet fails.
- Curated channel selection: Instead of having to maintain playlists yourself, a constantly updated selection is available to suit the company's orientation.
- Legal documentation: In the event of GEMA checks, all the necessary evidence is automatically available.
Music subject to GEMA and GEMA-free alternatives
Basically, there are two legally compliant options for restaurateurs, which differ depending on the operating concept:
Way 1: Properly register GEMA-licensed music
If you don't want to do without well-known charts and current hits, you need a GEMA licence. The fees depend on the operating area and sector. Important to know: In addition to GEMA, GVL (Gesellschaft zur Verwertung von Leistungsschutzrechten), which administers the rights of performers and producers of sound recordings, is usually also relevant. These rights are also administered by GEMA in Germany, but there are different regulations abroad. An experienced service provider takes over this administration completely.
Way 2: Switch completely to GEMA-free music
GEMA-free music comes from a repertoire that is not represented by traditional collecting societies. Businesses that rely exclusively on such programmes do not need to register with GEMA and do not pay ongoing licence fees. High-quality, professionally curated GEMA-free programmes sound similar to commercial music - and offer an equally suitable atmosphere for many catering establishments.
A hybrid solution is also possible: playing GEMA-free music in certain zones of the venue and using GEMA-licensed programmes in other areas. This reduces the overall costs without sacrificing diversity.
sonicsense: The contact for legally compliant catering music
sonicsense offers restaurateurs a complete music service that covers both of the above channels - without any effort on your part.
The range includes more than 170 licensed music channels (GEMA, AKM, SUISA) as well as 33 royalty-free channels, categorised by music genre and area of application. Whether jazz for an upscale restaurant, energetic sound for a bar or relaxed ambient music for a café: the right channel is already curated and ready for use.
The integrated GEMA administration service takes care of all communication with GEMA and GVL on request: from initial registration and annual maintenance to documentation in the event of inspections. You concentrate on your business - the licence issues run in the background.
Legally compliant music for your catering business
Whether GEMA-free or GEMA-licensed with full service: sonicsense delivers the perfect sound for your venue - including licence management and professional technology.
Get non-binding advice nowConclusion
Spotify and comparable private streaming services are simply not designed for commercial use - this is not a grey area, but is clearly anchored in the terms of use and copyright law. Any restaurateur who nevertheless relies on these services runs the risk of incurring substantial additional payments and warnings.
The good news is that legally compliant alternatives are simpler and often cheaper than many people assume. Those who want to completely GEMA-free music saves annual fees and the entire administrative effort. If you don't want to do without well-known music, you can hand over the GEMA registration to an experienced service provider and don't have to worry about anything yourself.
Frequently asked questions about the commercial use of music
Is it even legal to use Spotify in the catering trade?
No. Use in commercial premises such as restaurants, cafés or bars is expressly prohibited according to the provider's terms of use. The service is licensed exclusively for private, non-commercial use.
What are the penalties for commercial Spotify use?
Anyone who plays unlicensed music in public in a commercial setting is committing a copyright infringement. GEMA can levy a control surcharge, which corresponds to a doubling of the regular tariff fees. In addition, there is the threat of costly warnings from rights holders.
Is Spotify Premium enough for restaurants or bars?
No. A premium subscription only removes the adverts for private listeners, but does not grant any rights for public or commercial performance. The paid version is also not permitted for commercial use in the catering industry.
What is the difference between private and commercial music use?
Private use takes place at home or in the car with family and friends. As soon as music is played in publicly accessible rooms with public access - such as in a catering establishment - it is referred to as public performance. This requires special licences to pay for the copyrights.
Do I have to register for GVL as well as GEMA?
In Germany, GEMA administers the neighbouring rights for GVL and forwards the corresponding fees to GVL. A separate registration with GVL is therefore generally not necessary if you are correctly licensed via GEMA. Different regulations apply abroad, however, where separate registrations with the respective neighbouring rights societies may be necessary. An experienced service provider such as sonicsense takes over this administration completely for you.
Is GEMA-free music really free?
GEMA-free does not automatically mean free of charge, but that no fees are payable to GEMA. Professional providers such as sonicsense work via a subscription model. The advantage: fixed, predictable costs - without annual tariff increases from the collecting societies.
List of sources
[1] Spotify AB, Terms of Use. Spotify is intended for private, non-commercial use only.
[2] German Music Information Centre (miz), Allgemeine Fragen zum Urheberrecht in der Musik. GEMA control surcharge and double tariff fee for unlicensed performances.
