Emie WangSpotify is the world's most popular music streaming platform, with over 600 million users globally as of early 2026. Millions of Australians use it daily — and many small business owners assume that their personal or even business Spotify subscription entitles them to play that music in their café, gym, salon, or retail shop. That assumption is legally wrong, and it can cost businesses thousands of dollars in licensing fees and penalties.
What Spotify's Terms of Service Actually Say
Spotify's Terms and Conditions are explicit: its service is licensed for personal, non-commercial use only. Clause 9 of Spotify's standard terms states that the service may not be used for "public performance" — a term that, under Australian copyright law, includes playing music audibly in any premises where members of the public are present.
This means that playing a Spotify playlist at your café, waiting room, retail store, or fitness class using a personal or business subscription is a breach of Spotify's terms — and more importantly, it is a breach of Australian copyright law if you have not obtained the correct public performance licence.
Australian Copyright Law and Music in Business Premises
Under the Copyright Act 1968 (Cth), performing a musical work in public — which includes playing recorded music through a speaker system in a commercial setting — requires authorisation from the rights holders. There are two separate rights involved:
1. The composer's and publisher's rights (the composition itself) — administered in Australia by APRA AMCOS (Australasian Performing Right Association / Australasian Mechanical Copyright Owners Society).
2. The record label's and performer's rights (the sound recording) — administered in Australia by the Phonographic Performance Company of Australia (PPCA).
Both organisations require separate licences if you play recorded music in your business. APRA AMCOS has issued thousands of compliance notices and pursued legal action against Australian businesses, including cafés and retail stores, for playing unlicensed music.
What Licences Do You Need?
If you are playing recorded music (from Spotify, YouTube, a CD, or any other source) in a commercial setting open to the public, you typically need:
APRA AMCOS licence. The most common option for small businesses is the "Background Music" licence. Annual fees vary based on the size of the venue, the type of business, and whether the music is incidental or central to the business offering. A small café might pay $200-400 per year; a gym or fitness studio with music as part of its offering will pay significantly more.
PPCA licence. This is an additional licence covering the sound recording rights. Many businesses are unaware they need this second licence, as APRA AMCOS is better known. The PPCA also offers tiered licensing based on venue type and size.
Spotify for Business (via Soundtrack Your Brand). Some businesses use Spotify's commercial licensing partner, Soundtrack Your Brand, which provides a legal streaming service for commercial premises. This service includes the necessary public performance rights for use in business settings and costs significantly more than a personal subscription — starting from around $35-50 per month for small venues.
The Risks of Using Personal Spotify in Your Business
Copyright infringement. If APRA AMCOS or the PPCA discovers you are playing music in your business without a licence, they can issue an infringement notice. Under Australian copyright law, damages for infringement can include both actual loss to the rights holders and additional damages for flagrant infringement. Court-ordered damages in Australian music licensing cases have ranged from several thousand to tens of thousands of dollars.
Spotify account termination. Beyond copyright law, Spotify can terminate your account if it detects commercial use in violation of its terms. This can affect your personal playlists, saved music, and podcast subscriptions.
Business insurance complications. Some business insurance policies have exclusions for losses arising from deliberate statutory breaches. A copyright infringement finding could potentially affect a claim under some policy terms — a risk that a business legal adviser can help you assess.
What Happens If You Receive a Licence Notice?
APRA AMCOS employs field officers who conduct compliance visits to businesses — particularly cafés, gyms, restaurants, retail stores, and salons. If your business receives a compliance notice or demand letter from APRA AMCOS or the PPCA, the steps you take in the first 30 days can significantly affect the outcome.
A legal expert can review the notice, assess whether the licensing claim is accurately calculated, and negotiate a settlement if licence fees are claimed retrospectively. In some cases, businesses have successfully challenged the quantum of retrospective claims, particularly where they can demonstrate the use was limited or intermittent.
Practical Steps for Australian Business Owners
Stop using personal Spotify immediately in your business premises and switch to a compliant commercial music service or silence until a licence is in place.
Register with APRA AMCOS. Their online licence portal provides an instant quote based on your business type, size, and estimated music usage.
Check PPCA requirements. Not all businesses need a PPCA licence — for example, if you only play live music, the PPCA licence is not required. A legal adviser can confirm your obligations.
Retain documentation. Keep records of when you obtained your licence and any correspondence with music rights bodies. This evidence is valuable if a retrospective claim is ever made.
Review your commercial lease. Some commercial leases in Australia include provisions about permitted uses of the premises, which may have implications for entertainment-related licensing obligations.
Get Expert Legal Advice on Business Music Licensing
Navigating Australia's copyright licensing framework is genuinely complex, and the consequences of getting it wrong — particularly for small businesses operating on thin margins — can be severe. Expert Zoom connects Australian business owners with legal experts who understand commercial copyright law, licensing compliance, and dispute resolution with rights organisations. Book a consultation today to get a clear picture of your obligations.
This article provides general information about Australian copyright and music licensing law. It does not constitute legal advice. Consult a qualified Australian lawyer for advice specific to your business situation.
