When the news broke about the $300 million lawsuit against Peloton, it was a clarion call for many to reexamine how their companies were licensing and reporting their use of copyright-protected music. The National Music Publishers’ Association brought the copyright infringement claim against Peloton on behalf of 14 of its music publisher members. 

There’s no doubt that the right music can enhance your company’s success, but it’s important to remember that using major label hits or trending indie tracks requires proper licensing. With a company’s reputation and finances on the line, it’s crucial to understand how music licensing works and the range of costs associated with it. Read on for the most important things you need to know about the cost of music licensing for businesses.

Most businesses want to enlist the power of music to motivate and inspire their customers, but the thorny thicket of music licensing causes understandable hesitation and confusion. What kind of music licensing is necessary to have music on a website? Or in a commercial video? Or to play music during a performance or event? And what about music licensing for small businesses, like restaurants, bars, and stores? Or for fitness companies to enhance workouts?