Music licensing is one of those topics that makes venue operators’ eyes glaze over, and I can’t blame them. The system is complex, the terminology is confusing, and the consequences of getting it wrong can be expensive. But if you’re playing music in a commercial setting — whether it’s a live band, background music, or a DJ — you need a licence, and understanding the basics will save you money and hassle.

The licensing bodies

In Australia, two main organisations collect royalties for music use:

APRA AMCOS represents songwriters and publishers. When someone writes a song, APRA AMCOS collects licence fees on their behalf whenever that song is performed or communicated publicly.

PPCA (Phonographic Performance Company of Australia) represents record labels and recording artists. When a recording of a song is played (as opposed to performed live), PPCA collects fees for the use of that specific recording.

In 2019, these two organisations created OneMusic Australia as a joint licensing scheme to simplify things. Instead of dealing with two separate licences, many venues can now get a single OneMusic licence that covers both the APRA AMCOS and PPCA components.

Who needs a licence

If you’re a venue, restaurant, bar, cafe, shop, or any business that plays music — live or recorded — in a space accessible to the public, you need a licence. This includes:

• Live bands and solo artists performing
• Background music from speakers
• DJ sets
• Music playing from a streaming service, radio, or TV
• Music at a private function in a commercial venue

The common misconception is that if you’re playing music from Spotify or Apple Music, those subscriptions cover public performance. They don’t. Your personal streaming subscription gives you the right to listen privately. Playing it in a commercial setting requires a separate public performance licence.

How fees are calculated

OneMusic licence fees vary based on several factors: the type of venue, the capacity, whether music is live or recorded, and how frequently music is played. For a small cafe playing background music, the annual fee might be $300-$600. For a large nightclub with regular live music and DJs, it could be $5,000-$15,000 or more.

The OneMusic website has a calculator that gives you an estimate based on your specific circumstances. I’d recommend using it as a starting point and then having a conversation with OneMusic directly if your situation is complex.

For venues that host live music, there’s typically a higher fee tier that reflects the additional licensing required. This is sometimes passed through to the artist or promoter as part of the venue deal, though the venue remains ultimately responsible for having the correct licence.

Common mistakes

Not having a licence at all. This is the biggest risk. APRA AMCOS and PPCA actively monitor compliance, and operating without a licence can result in legal action and significant penalties. It’s not worth the risk.

Having the wrong type of licence. If your licence covers background music but you start hosting live music nights, you need to update your licence. The categories matter.

Not reporting accurately. Some licence types require you to report what music is played, particularly for live performances. Failure to report doesn’t reduce your fee, but it does affect how royalties are distributed to artists. Accurate reporting ensures the people who wrote and recorded the music get paid fairly.

Assuming the artist’s licence covers you. Artists may have their own licences for performing their original music, but this doesn’t cover the venue’s obligation. If a cover band plays in your venue, you need a licence regardless of what licences the band holds.

The fairness argument

I occasionally hear venue operators complain about licensing fees, and I understand the frustration when operating costs are already high. But the principle behind music licensing is straightforward: people who create music deserve to be paid when their work is used commercially.

The fees are generally reasonable relative to the value music brings to a venue. Background music in a restaurant improves the dining experience and increases time spent (and money spent). Live music in a pub draws a crowd that buys drinks. The music isn’t decoration — it’s a core part of the business proposition.

Getting it right

My advice for any venue operator: visit the OneMusic website, get a quote, and set up the correct licence before you start programming music. Budget for it as an operating cost, like you would for cleaning or electricity. Report your music use accurately. And if your programming changes — you start hosting live music, you add a DJ night, you expand your capacity — update your licence accordingly.

It’s administrative work, but it’s the right thing to do, and it keeps you on the right side of the law.