It is a common sight in many small shops. A phone is plugged into a speaker, and a YouTube playlist is running in the background. It seems like a free and easy way to set a mood. But as a business owner, you have to ask: is this actually legal?
The short answer is no. Using a standard YouTube or YouTube Music account to play content in a store, restaurant, or office is against the law. It violates copyright rules and the platform’s own terms. If you get caught, the fines can be steep.
This guide explains the rules for video and music from YouTube so you can protect your business.
Can I play YouTube Music in my business?
Many owners assume that if they pay for a subscription, they can play what they want. However, paying for a premium YouTube account only covers personal use. It does not cover public performance.
When you listen to music at home, that is private. When you play that same music in a shop where customers can hear it, that is a public performance.
According to US copyright law, you need a specific license to broadcast music to the public. If you do not have one, you are infringing on the rights of the artists. This can lead to fines ranging from $750 to $150,000 per song.
The Problem with “Royalty Free” YouTube Music for Retail Stores
You might search for “copyright free” or “royalty free” playlists on YouTube to save money. Channels like Lofi Girl or No Copyright Sounds are very popular.
The issue is that “royalty free” on YouTube usually means the music is safe for digital creators. It allows a streamer to use the song in a video without getting banned. It does not give a physical store the right to broadcast it to customers.
Most of these artists still register their work with Performing Rights Organizations (PROs) like ASCAP or BMI. If a PRO agent visits your shop and hears that music, you could still be liable for fees.
Make an informed choice! Compare music providers for your business on our Compare Page—free and simple.
YouTube Commercial Use Terms of Service Are Clear
Beyond copyright law, you also have to follow the rules of the platform. YouTube is very clear about how you can use their service.
Their Terms of Service state that you cannot use the service for commercial use unless you have prior written approval. This applies to both the audio and the video content.
Is it legal to play YouTube videos in a store?
Some businesses, like bars or gyms, want to show music videos on their TVs. This is also risky.
When you play a video in a public space, you are dealing with two types of rights:
- Audio Rights: Covered by groups like ASCAP and BMI.
- Visual Rights: Covered by the copyright owners of the video clips.
Even if you mute the TV, showing the video is still a “public display.” To do this legally, you often need a separate license from an organization like the Motion Picture Licensing Corporation (MPLC). Most standard business music providers do not cover this video portion.
Better Music Alternatives for Your Small Business
The good news is that legal alternatives are affordable and easy to set up. These services are built for commercial use. They handle all the licensing for you, so you never have to worry about fines.
They also offer features that YouTube does not, such as scheduling tools and the ability to remove explicit songs.
- If you have more than one shop, you can manage them all from one place. Learn more about solutions for multiple business locations.
- If you need a simple app to run on your phone or tablet, check our guide on streaming music for business playback.
- Not sure which service is right for you? You can compare music for business providers side-by-side to find the best fit.
- For a deep dive into how these licenses work, read our overview on licensed music for business.
Using a legal service protects your brand and ensures the artists get paid fairly.
Frequently Asked Questions About YouTube for Business
Q: Can I play YouTube Music in my business if I have a Premium subscription?
A: No. A Premium subscription removes ads for your personal enjoyment, but it does not include a “commercial public performance license.” The terms of service still limit usage to personal, non-commercial entertainment.
Q: Is it legal to play YouTube videos in a store if the sound is muted?
A: Generally, no. Playing the visual part of a video in a public place is considered a “public display.” While you might avoid music licensing fees by muting the sound, you could still face issues from video copyright holders or organizations like the MPLC.
Q: Can I use a personal Spotify or Apple Music account instead?
A: No. Just like YouTube, Spotify and Apple Music are for personal use only. Their user agreements explicitly state that they cannot be used for public broadcasting in a business. Despite their popularity, there is no Amazon Music for Business, Apple Music for Business or Spotify for Business.
Q: What is the fine for playing music without a license?
A: Federal copyright law allows for statutory damages. These can range from $750 to $30,000 per violation. If the court decides the violation was willful, the fine can go up to $150,000 per song.
Q: Can I play the radio in my store for free?
A: Sometimes. There is a “homestyle exemption” in US copyright law. If your store is small (under 2,000 square feet) and you use a simple radio with a small number of speakers, you might be exempt. However, this does not apply to streaming apps or digital music files.
Q: Do I need a license for a waiting room TV?
A: Yes. A TV in a waiting room is considered a public performance. Standard cable packages for homes do not cover this. You typically need a business cable package or a specific public performance license.
We Can Help You on Your Next Steps
With so many companies offering legally licensed music for business it can get very complicated, quickly. Thankfully, MusicForBusinessFinder.com can help you learn about what features can help your business the most, how to play it back and find the right provider, at no cost to you.