Convergence: Music Use ( and Misuse) for Business

The Hidden Costs of Music Misuse in Businesses: A $1.38 Billion Industry Wake-Up Call

​​78% of small-to-midsize businesses in the US are currently misusing personal streaming accounts to play music for their customers.  This seemingly harmless practice is costing the music industry a whopping $1.38 billion annually.  The consequences of such misuse, drawing attention to a high-profile case in Las Vegas and urges the industry to raise awareness and provide legal alternatives.

​The Venetian Case in Las Vegas
The renowned Venetian hotel in Las Vegas recently faced a $264 million lawsuit for illegally streaming songs via YouTube at its upscale karaoke lounge. Under new management by Apollo Private Equity, the lack of investment in music rights and artist ownership became apparent. This case sheds light on a widespread issue, as nearly 78% of 3.8 million small to midsize businesses in the US alone are misusing music.

Legal Ramifications and Industry Responsibility
Businesses often underestimate the importance of proper music licensing, leading to a myriad of legal and financial consequences. Copyright infringement fines can range from thousands to hundreds of thousands of dollars. Beyond fines, businesses may be required to pay damages to copyright holders for losses incurred. The responsibility lies not just with businesses, but with the industry itself to educate on proper music use and prevent the loss of income for creators and rights holders.

​Protecting the Industry
Services like Soundtrack Your Brand offer comprehensive licenses, protecting businesses from illegal music use. While consumer DSP and ad-based services like YouTube and Pandora are popular among businesses, they often contribute to the problem. A collaborative effort within the industry, coupled with education, can prevent the loss of $1.38 billion in revenue annually and protect the rights of music creators.

The Power of Clarity
Misuse is rampant due to a lack of clarity on what businesses can or cannot do. Inaccurate information from performance rights organizations (PROs) exacerbates the problem.  Soundtrack Your Brand, for instance, secured over 16,000 direct licenses globally to provide a vast catalog of music legally. It's crucial for businesses to understand the importance of proper licensing to maintain the value of music globally.

​As we enter 2024, the music industry faces a significant financial loss due to the misuse of music in businesses. By fostering clarity, education, and collaboration within the industry, we can prevent another $1.38 billion loss. If you own a business like a café, restaurant, coffeeshop, retail store , hotel or gym that has public customers, you know that music has a positive impact on your customers' experience and you can help to protect the rights of music creators, ensure fair compensation, protect you from legal consequences and sustain the unique needs around B2B music by subscribing to Soundtrack Your Brand.  Get started below with a fee trial and let me know if you need any help getting it set up! 

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