6. Commercial Spaces

When music is played in a public business environment, it is legally considered a “Public Performance.” This generates royalties for the Songwriters and Publishers (and in many countries, the Master Owners/Performers via Neighboring Rights).

1. The “Blanket License” System

Malls, gyms, restaurants, and retail stores do not pay per song. Instead, they pay an annual Blanket License fee to organizations like SOCAN/Re:Sound (Canada), ASCAP/BMI (USA), or PRS/PPL (UK).

• This fee allows the business to play any music in that organization’s massive catalog legally.
• The fee is usually calculated based on the square footage of the venue or the “capacity” of the space.

2. Background Music Services (B2B)

Most businesses do not use personal Spotify accounts (which is technically a violation of Terms of Service). They use B2B services like Soundtrack Your Brand, Mood Media, or Stingray Business.

• These services include the “Public Performance” license in their monthly subscription fee.
• The Revenue Flow: The service tracks what is played → Reports to PROs/CMOs → Money is distributed to the rights holders.

3. Why This Matters for Independent Artists

If your music is “Retail Friendly” (Lo-fi, Chill, Upbeat Pop), it might be sitting on thousands of in-store playlists. Without proper registration at your PRO and Neighboring Rights organization, you will never see this “Background” income.