It is one of the most common misunderstandings we see from small business owners. You already pay for a music subscription on your phone, so it feels logical that you should be able to play it in your store.
However, consumer music streaming apps such as Pandora or Spotify are legally restricted to private use only.
So is Pandora for commercial use? The answer is a hard no. Once music is played for the public, it requires a completely different set of licenses than what comes with a standard account. To do this legally, you need to switch to a commercial music for business plan.
You can read our full guide on Pandora for Business to see how to make the switch and which plan fits your budget.
Personal vs. Commercial Pandora: What’s the Difference?
To a listener, the music sounds the same. However, under U.S. Copyright Law, the way you consume that music changes the license you need.
When you sign up for a personal Pandora account, you agree to their Terms of Use, which explicitly states the service is for personal, non-commercial use only. This covers you listening in your car, at home, or on headphones.
Once that music is played out loud in a business—whether it’s a coffee shop, retail store, or waiting room—it becomes a “Public Performance.” The artists, songwriters, and publishers are owed a higher royalty rate for these performances because their music is helping you drive revenue and create an atmosphere for your customers.
Make an informed choice! Compare music providers for your business on our Compare Page—free and simple.
The Financial Risks of Playing Unlicensed Music with Personal Pandora
Many business owners assume that because they bought a subscription to a music streaming service, they have paid for the music. This is a dangerous misconception.
Personal subscriptions to Pandora, Spotify, Apple Music, or Amazon Music do not include the licenses required by Performance Rights Organizations (PROs) like ASCAP, BMI, SESAC, and GMR. These organizations employ field agents who visit businesses specifically to check for unlicensed music playback.
If you are caught playing Pandora for commercial use without a license, the penalties are severe:
- Fines per song: Statutory damages for copyright infringement can range from $750 to $30,000 per song played.
- Willful Infringement: If a court decides you knew the rules and ignored them, fines can go up to $150,000 per violation.
- Legal Fees: You are also often responsible for the legal costs of the PROs suing you.
For a deeper dive into how these licenses work and why they are necessary, read our guide on Licensed Music for Business.
According to the U.S. Copyright Office, copyright owners have the right to pursue these statutory damages to protect their work. It is simply not worth risking your business’s profits to save a few dollars on a monthly subscription.
The Legal Solution: Two Different "Pandora" Options
The good news is that you don’t have to give up the Music Genome Project that made Pandora famous or the stations you love. You just need to switch to a legal commercial Pandora service.
That’s where some business owners get confused because there are technically two different services that offer the Pandora brand for commercial use. It is important to choose the one that fits your hardware and management needs.
1. Pandora CloudCover: This is the modern, direct-from-provider solution (following SiriusXM’s acquisition of Cloud Cover Music). It combines Pandora’s algorithmic radio with “Human Created” stations from CloudDover and has more features such as scheduling and a web dashboard.
2. Pandora for Business by Mood Media: This is a legacy partnership where the Pandora service is delivered through Mood Media. This service relies exclusively on Pandora’s Music Genome Project and traditional Pandora UX.
Regardless of which specific version you choose, switching to a commercial account provides the essential protections you need:
Legal Coverage: Both services include all necessary licenses from ASCAP, BMI, SESAC, and GMR.
Clean Lyrics: Filters are applied to ensure no explicit content offends your customers.
No Ads: A seamless listening experience without consumer commercials or interruptions.
If you are managing a growing brand, Pandora CloudCover is often the more agile solution. It makes it easier to control the vibe across multiple business locations from a single dashboard.
If you have a single location and love Pandora’s traditional UX and stations, than consider Pandora for Business by Mood Media.
How to Set Up Your Commercial Pandora Music
Switching to a legal service is usually as simple as downloading a different app. You do not necessarily need expensive rewiring. Most commercial services, including Pandora CloudCover, offer flexibility in how you can playback the music, allowing you to use existing tablets, computers, or specialized hardware like a CloudBox or Sonos system.
Frequently Asked Questions
Q: Can I use Pandora for commercial use if I pay for Premium?
A: No. Pandora Plus and Pandora Premium are consumer subscriptions. They remove ads for personal listening but do not grant the “Public Performance Rights” required to play music in a business. You must use a service like Pandora CloudCover or another fully licensed music for business provider to be legal.
Q: What is the fine for playing unlicensed music?
A: Federal copyright laws allow for statutory damages ranging from $750 to $30,000 per song. If the infringement is found to be willful, penalties can increase to $150,000 per violation.
Q: Does Pandora for Business or Pandora CloudCover cover ASCAP and BMI fees?
A: Yes. When you subscribe to a commercial service like Pandora CloudCover, your monthly fee includes the licensing payments to PROs like ASCAP, BMI, SESAC, and GMR, so you don’t have to pay them separately.
Q: Can I just use a Bluetooth speaker in my store?
A: You can use a Bluetooth speaker, but the source of the music must be a licensed business service. Streaming from a personal Spotify or Pandora account to that speaker is copyright infringement.