UPDATED with 2025 pricing
Running a small shop comes with its fair share of expenses, from rent and rates to stock and staff. One cost that often goes overlooked is the requirement for a music license if you choose to play copyrighted music in your shop.
Music is a great way to create ambience and enhance the shopping experience for your customers. However, it’s essential to understand the costs associated with obtaining the proper license and what other options you have when it comes to background music in your shop.
In this post, we’ll go into…
Why you need a music licence to play music in a shop
What dictates the cost of a music licence?
How much a music license is for a small shop
The alternative to paying for a music licence
Why You Need a Music Licence to Play Music in Your Shop
When you play copyrighted music in your shop you’re using someone else’s creative work to enhance your business. Just as you would compensate an employee for their services, musicians and music publishers deserve compensation for their artistry.
A music license grants you legal permission to play copyrighted music in your shop without infringing upon copyright law. This license ensures that artists receive fair compensation for their work and helps support the creative industry as a whole.
The music licence is issued by PRS and PPL who together operate TheMusicLicence. If you want to play copyrighted music in your shop you need this licence.
The only way you can play music without paying PRS PPL for a music licence is when you play royalty-free music.
What Dictates The Cost of a Music Licence?
The main factor in how much you will pay for a shop music licence is the audible area. Measured in square meters (m2). It’s classed as the wall-to-wall audible area where both staff and customers can hear the music. This includes toilets, back offices and store rooms.
The larger the audible area of your shop, the more you will pay for your music licence.
How Much Is A Music Licence For A Small Shop?
Music Licence Cost For a Small Shop – Up to 100 m2 Audible Area
To work out the cost of a music licence for your shop, you need to combine two tariffs, one from PRS and the other from PPL.
If you host live music performances or events featuring copyrighted music, you will need a separate licence for those events.
Calculation -Standard Rate: Up to 100 m2
PRS Tariff Charge £232.80 – see tariff
PPL Tariff Charge £195.40 – see tariff
The Cost of a PRS PPL Music Licence in 2025 for a Small Shop is £428.20 + VAT (you would save £278.20 swapping to Background Sounds)
(example above for small shop = audible area up to 100m2)
Click here if your shop is under 50m2
*calculation based on tariffs correct as of 14th January 2025
Important Notice – Surcharge Cost
If you have been playing commercial music without a music license your first invoice will be charged at a higher rate which includes a surcharge, this is the standard license rate plus 50%. Using the example above this would mean your cost would be £642.30 +VAT (approx)
You can use any method you want to play your commercial music (TV, CD, radio or digital service) once you have purchased a music license from PRS PPL.
Concessionary Discount for Shops – audible area below 50m2
If you have a shop under 50m2 you may be granted a concessionary discount from PRS and PPL. However there are strict criteria for this discount, they are:
▶️ The audible area must be 50m2 or less
▶️ You can only play music via a traditional portable radio. Playing only BBC national and local radio stations. Or independent stations listed by Ofcom as AM or FM stations
▶️ Use a TV (up to 26 inches) with integrated speakers and only broadcast BBC1, BBC2, ITV1, Channel 4, S4C and Channel 5.
▶️ No other means to play audio can be used in your shop (e.g CD, digital service)
Obtaining a Music License to Play Copyrighted Music
If you want to play commercial music in your business (UK-based) the only company you can purchase a music licence from is PRS PPL. They collectively operate and issue TheMusicLicence.
Payment is for the year upfront and the tariff sums are adjusted in line with inflation every year.
Be Aware of Automatic Annual Renewal
Expect your Music licence to have an automatic annual renewal. Cancellation of a music license requires written notice a minimum of one month before the end of the contract.
Alternative to Music Licence for a Small Shop
Royalty-free music, also known as licence-free music is music you can play in any business without a PRS PPL Music licence. This is because PRS and PPL do not collect royalties for the artists. Instead, they are paid via a music licensing company.
Background Sounds is a specialist provider of royalty-free music, supplying businesses across the UK with access to an array of royalty-free playlists.
A yearly subscription to Background Sounds costs £150 + VAT with a monthly payment option available for those wanting the flexibility to cancel anytime. This costs £15 (+vat per month).
If you want to discover how you can avoid licensing fees altogether with a subscription to Background Sounds’ royalty-free music service here.
Retail Customer Feedback
Here’s what our Retail customers think about our royalty free service.
Lesley Bancroft – Buy The Light
“Was a little concerned that the music might be “elevator” style, but it is totally not. The music is brilliant, normal, just not known songs. They charge a realistic price, so it’s cost effective music in our shop and they’re lovely people to deal with. Everybody should be aware that there are other options and it is not necessary to be forced down the PPL PRS route!”
Justin Noble – Scale Model Scenery
“We just wanted something to add a little atmosphere to our workspace. After cancelling PRS/PPL 3 months ago (which was far from an easy task), Background Sounds was an obvious choice. Great choice of playlists covering a wide range of genres. Really easy to get set up. We had music in minutes and it saves us around £500 a year compared to the cost of PRS/PPL/ Highly recommended.”
FAQs: Music Licence Costs for Small Shops in 2025
1. Do I need a PRS PPL music licence if I play music from Spotify or the radio in my shop?
Yes. Even if you play music from streaming platforms like Spotify, Apple Music, TV or a regular radio, you still need a PRS PPL music licence to play copyrighted music in a commercial space legally.
👉 It’s important to know that personal streaming accounts are not licensed for business use and should not be used.
2. How much does a music licence cost for a small shop in the UK in 2025?
In 2025, the cost of a PRS PPL music licence for a small shop (with an audible area of up to 100m²) is £428.20 + VAT. Shops that have been playing music without a licence may also face a 50% surcharge, bringing the total to approximately £642.30 + VAT.
3. Can I avoid paying for a PRS PPL licence and still play music in my shop?
Yes, you can. By using royalty-free music (also known as licence-free music), you can legally play background music in your shop without paying PRS or PPL. Services like Background Sounds offer affordable subscriptions at £15 + VAT per month, with playlists curated specifically for business use.
4. What happens if I don’t have a PRS PPL music licence for my shop?
Playing copyrighted music without a valid PRS PPL licence can lead to fines, backdated charges, and legal action. In most cases, PRS and PPL will likely issue a surcharge (typically +50%) on your first invoice to cover unpaid use.
5. What’s the difference between royalty-free music and licensed music?
Licensed music (also referred to as commercial music) is the type that you are familiar with. If you play this type of music in your business, you are legally required to have a PRS PPL licence, as these artists are registered with PRS PPL.
Royalty-free music, on the other hand, is by artists you won’t recognise, and they are not registered with PRS PPL. Instead, they have opted to monetise their music through more modern routes, such as a music licensing company.
These companies distribute an artist’s work for use as background music in businesses. The music licensing agency collects these artists’ royalties, not PRS PPL. Hence, a PRS PPL music licence is not required to play royalty-free music.
Conclusion: How Much is a Music Licence For a Small Shop?
Playing music in a shop is a great way to create an ambience and enhance customer experience. If you play commercial music in your shop, you will need to buy a music licence from PRS PPL. The cost of a small shop with an audible area of up to 100m2 is £428.20 + VAT. A concessionary discount may be possible, but this has several restrictions.
For those small shop owners who do not want to pay for a music licence but still want to play royalty-free music is a good option to explore.
About Us
Background Sounds is a specialist provider of royalty-free music. That’s music you can play without a PRS PPL Music Licence. We supply businesses across the UK with background music at a fraction of the cost of a music licence.
Access to the service is via online music streaming and is available with a subscription. You can find out all you need to know on our home page here.
