PRS licence costs for UK businesses depend on venue type, capacity, and how music is used. Most businesses buy a combined TheMusicLicence covering both PRS and PPL. This guide breaks down the tariff categories and what businesses typically pay.
PRS licence vs PRS membership - two different things
There are two distinct PRS costs that often get confused. The first is PRS membership - what songwriters and publishers pay to join PRS as a rights holder and collect royalties. The second is a PRS music licence - what businesses pay for permission to play music in public. This guide covers the licence cost for businesses. If you are a songwriter looking to join PRS, see the PRS registration fee guide instead.
What is TheMusicLicence?
In practice, most UK businesses do not buy a PRS licence and a PPL licence separately. Instead, they buy TheMusicLicence - a single licence administered by PPL PRS Ltd that covers both the composition rights (PRS) and the recording rights (PPL). TheMusicLicence replaced the need to hold separate licences from both organisations. The cost covers any business that plays music in public: shops, offices, restaurants, gyms, pubs, salons, hotels, and anywhere else music is audible to the public or to employees.
Tariff categories and what determines the cost
TheMusicLicence is not a flat fee. The annual cost is calculated using a tariff that varies by:
- Business type: retail, hospitality, fitness, office, healthcare, events, broadcast, online.
- Size or capacity: number of employees, floor area, or seat capacity depending on the tariff.
- How music is used: background music only, live performance, DJs, televisions showing broadcast content, or online streaming.
- Region: in some tariffs, London pricing differs from the rest of the UK.
Indicative costs for common business types
The following are indicative annual costs based on PPL PRS published tariffs as of 2026. Exact figures depend on the variables above and should be confirmed at pplprs.co.uk before purchase.
- Small shop or salon (up to 4 employees, background music only): approximately £160 to £250 per year.
- Restaurant or cafe (background music, up to 50 covers): approximately £250 to £450 per year.
- Gym or fitness studio (background music and fitness classes): approximately £400 to £900 per year depending on member count.
- Pub or bar (background music and occasional live music): approximately £350 to £700 per year.
- Hotel (background music across common areas): approximately £400 to £1,200 per year depending on room count.
- Office (music for employees, not customers): approximately £120 to £300 per year depending on staff count.
The PRS licence loophole
A frequently searched question is whether there is a loophole that lets businesses play music without a licence. The short answer is: legally, no. However, a few specific scenarios do not require TheMusicLicence:
- Music played only to the business owner with no employees or public present - private listening does not constitute a public performance.
- Music that is out of copyright (compositions by composers who died more than 70 years ago) does not require a PRS licence for the composition. A recording licence (PPL) may still apply.
- Some online streaming services - notably Amazon Prime Music for Business and similar business-licensed streaming products - include a blanket licence in their subscription fee, meaning a separate TheMusicLicence is not required. Check the terms of your specific service.
- Businesses that only play music through a licensed radio broadcast (a radio with no public performance beyond the broadcast) may have reduced obligations under specific tariffs.
How to buy a music licence
Apply for TheMusicLicence at pplprs.co.uk. The application asks for your business type, size, and usage description, then calculates the applicable tariff. Payment is annual and licences renew automatically. Operating without a licence when one is required leaves the business liable to copyright infringement proceedings and back-payment of unlicensed usage.
If you are a songwriter or publisher looking to ensure your music generates income whenever it is played by licensed businesses, Code Group Music's catalog assessment covers PRO registration and royalty collection optimisation. Start at codegroupmusic.co.uk/#catalog-assessment.
Frequently Asked Questions
Do small businesses need a PRS licence?
Yes, if music is audible to employees or the public in any capacity. This includes background music from a radio, a streaming service, a TV, or a sound system. The size of the business affects the cost, not the requirement. PPL PRS does enforce unlicensed usage and pursues businesses that play music without a licence.
What is the difference between PRS and TheMusicLicence?
PRS (Performing Right Society) is the collection society for composition rights. TheMusicLicence is a joint product from PPL PRS Ltd that covers both PRS (compositions) and PPL (recordings) in a single annual licence. Most UK businesses buy TheMusicLicence rather than separate PRS and PPL licences.
Is there a free way to play music in a business legally?
Some business-tier streaming services (Amazon Music for Business, Soundtrack Your Brand, Cloud Cover Music) include performance licensing in their subscription fee, covering the business licence obligation. These services are more expensive than consumer streaming but cheaper than a separate TheMusicLicence for larger venues. For smaller businesses, TheMusicLicence is usually the simpler option.
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