Spotify use in the hospitality industry: rules, risks and alternatives

Playing music in the hospitality industry is an essential part of the atmosphere and experience you want to offer your customers. Many business owners choose user-friendly services like Spotify to play their music. But are you actually allowed to use Spotify in the hospitality industry? What are the rules set by Buma/Stemra, and what fines can you expect if you violate these rules? And what are the alternatives, such as BCM Stream? In this article, we answer all these questions.

Can you use Spotify in the hospitality industry?

Spotify is a popular streaming service that offers a wide range of music, but Spotify's terms of use are clear: the service is intended for personal use. This means that playing music through Spotify in a commercial setting, such as a restaurant, cafe or bar, is not allowed. This is because the licensing agreements Spotify has with music producers and artists are specifically for personal, non-commercial use.

When to do it and when not to do it?

Allowed:

• Home use: You can use Spotify in your own home or for private parties without any problems.
• Personal use: Use with personal devices and for individual listening pleasure.

Not permitted:

• Hospitality and other commercial settings: Restaurants, cafés, bars, shops and other commercial environments are not permitted to use Spotify to play music.

What does Buma/Stemra say about Spotify in the hospitality industry?

Buma/Stemra is the Dutch copyright organization responsible for collecting royalties for the use of musical works. They state that separate licenses are required for the public performance of music in commercial settings, such as restaurants and bars. These licenses ensure that artists and rights holders receive fair compensation for the use of their work.

According to Buma/Stemra, the use of Spotify in the hospitality industry is not permitted because the service does not offer commercial licenses. Businesses must therefore find another solution that does have the proper licenses to play music in public.

What fine can you expect?

If your restaurant or bar is caught using Spotify without the proper licenses, you run the risk of a hefty back-tax assessment with a surcharge. Buma/Stemra can conduct inspections and impose penalties. The back taxes can vary depending on the severity of the violation but can amount to thousands of euros. This is in addition to any damages that artists or rights holders may claim.

So it is very important to comply with the regulations and purchase the right licenses to avoid legal problems.

The Spotify alternative: BCM Stream

BCM Stream is a legal and user-friendly alternative to Spotify for the hospitality industry. BCM Stream is specifically designed for playing music in commercial settings and meets all legal requirements. The reproduction rights are included in your subscription. To play music publicly, you’ll need to obtain a music license yourself through MijnLicentie.nl (Buma/Stemra and Sena).

Benefits of BCM Stream:

• Full licenses: BCM Stream ensures that reproduction rights are covered, so you can legally play music at your restaurant or bar.
• Wide range of music: Just like Spotify, BCM Stream offers an extensive music library with different genres and artists.
• Ease of use: The service is designed for easy use, with options to create playlists and play music across different devices.
• Customizable atmosphere: With BCM Stream, you can tailor the music to the atmosphere and time of day, enhancing your guests' experience.

By choosing BCM Stream, you not only avoid legal problems, but also support artists and music producers by giving them fair compensation for their work.

In a nutshell

Although Spotify is an excellent service for personal use, it is not suitable for commercial use in the hospitality industry. It is important to comply with Buma/Stemra regulations and choose services that do offer the proper licenses, such as BCM Stream. By taking the right steps, you can offer your customers a great musical experience without the risk of fines or legal complications. Make sure you’re always well-informed about the rules and the options available so that your business can play music in a legal and ethical manner.