Music that is live, recorded, or played on radio or TV still requires a music license
Branding a business with a commercial music service (CMS) can be tricky business when it comes to music licensing. Although a CMS can really help turn up the volume in any establishment, which performing rights organizations like BMI strongly promote, an agreement that an establishment has with a CMS provider only covers licensing for background music purposes. Once a business uses music in a manner beyond their pre-programmed CMS playlists, such as live – or played on radio or TV – those uses need to be licensed separately. In addition, if the business has an admission or cover charge, or dancing, a separate license is required, as the CMS license does not extend to those uses.
In a nutshell, music licensing fees are determined by intensity of music use. The more dependent a business is on music to drive their profits, the more specific the licensing requirements are. This concept is the same as supply and demand with any business. A songwriter or composer’s livelihood depends on licensing fees so it’s only fair they should be compensated for the integral role they play in the success of a business. Fortunately, BMI’s license for restaurants and bars provides for a la carte uses, so a business owner will only pay for whatever type of music is played and for what use.
