→ Budget expectations for licensed music streaming

For a small business owner, the thought of music licensing often brings up two fears: complexity and crushing cost. The good news is that securing a fully legal and stress-free soundtrack for your business is far more affordable than many assume.However, budgeting for background music involves two distinct, mandatory costs. You must account for the fees paid to the music collecting societies (The Site License) and the cost of the Commercial Music Service that delivers the music to your venue.Here is a budget breakdown of what a small business can expect to pay for legal background music in the UK.

The Mandatory Site License: PPL PRS Fees (The Baseline Cost)In the UK, if you play commercially available music (i.e., music by well-known artists) publicly in your premises, you are legally required to obtain TheMusicLicence from PPL PRS Ltd. This license covers the public performance rights for the creators of the music.

The cost is not a flat fee; it is calculated based on factors like your industry, the audible floor space, employee count, or customer capacity.

For common small business types, the estimated annual cost for TheMusicLicence (as of 2026, +VAT) is:

• Offices: Up to 4 staff members typically pay around £168 – £170 annually.
• Retail & Shops: A small shop (up to 50m²) can expect costs between £235 – £450 annually.
• Hair & Beauty Salons: Up to 10 treatment chairs is estimated to cost £370 – £392 annually.
• Cafés & Restaurants: Venues with up to 30 seats typically fall into the £515 – £537 annual range.
• Pubs & Bars: Background music in a space under 400m² is estimated at £420 – £438 annually.

Important Caveat: If you host live events, play music on hold over your phone system, or have multiple business locations, your PPL PRS costs will increase. The Commercial Music Service Fee (The Content Cost)

1Once you have the necessary public performance license, you must acquire the music content itself from a provider that is commercially licensed for business use. Your personal Spotify or Apple Music account is strictly for private use and is illegal in a commercial setting.The cost of a commercial music service can be split into two paths:Option A: Copyright Music Streaming (Playlists with popular artists)This option is for businesses that require popular, chart-topping music to fit their brand. This content is provided by commercial streaming platforms, which charge a fee to deliver the stream and may also include hardware and monitoring services.

• Budget Expectation: For a multi-location business using Auracle Sound as an example, the monthly fee is approximately £29.50 per site.
• Total Annual Cost: To budget for this option, you add the PPL PRS Fee + the Commercial Streaming Fee (e.g., £29.50 per month) for an all-inclusive legal service.

Option B: Royalty-Free Music Streaming (The Cost-Saving Alternative)Royalty-free music (also called “non-copyright” or “direct licensed” music) is created and licensed directly by a single entity, meaning the business is not liable for PPL or PRS royalties. By choosing this option, you can save “thousands on your annual premises license”. This is an ideal solution for offices, waiting rooms, medical practices (like dentists/doctors surgeries), and gyms that do not rely on chart hits.

• Budget Expectation: Royalty-free subscriptions are extremely competitive:
  • Providers often offer plans ranging from £20 to £30 per month per site for small businesses.
  • For example, deals for multi-site clients through Auracle Sound and partners, like Rehegoo, have been set at £30 per site per month, which is highly competitive against an estimated PPL/PRS premises license cost of £1000–£1300 per location for a full copyright license.

Total Annual Cost (Royalty-Free): You pay only the Commercial Streaming Fee (e.g., £15 per month), with no additional annual PPL PRS premises license fee. This represents a significant cost saving compared to the copyright option.Summary: Budgeting for Legal Music

Requirement	Copyright Music (Popular Artists)	Royalty-Free Music (Non-Copyright)
Site License (PPL PRS)	Mandatory. Cost based on business type (e.g., £235–£537 annually).	Generally Not Required. Saves thousands on the annual license.
Streaming Subscription	Mandatory. Typically starts around £29.50 per site per month.	Mandatory. Highly competitive, typically £20–£30 per site per month.
Total Cost	Site License Fee PLUS Streaming Fee	Streaming Fee Only

Choosing a licensed provider like Auracle Sound ensures that your music is not only expertly curated but is also fully compliant, protecting your small business from the steep fines associated with unlicensed play.