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Spotify for Business: Is it a legal music option for your business?

Choosing the right music for your business affects more than just ambiance—it shapes your brand, improves customer experience, and helps you stay on the right side of the law. While Spotify might seem like a convenient option, it’s important to understand its limitations in a commercial setting.

Spotify is built for personal listening—not for businesses. That’s where moodi Smart Automation comes in, offering a smarter, legally compliant, and professionally tailored alternative for your commercial audio needs.


The Legal Risks of Using Spotify in a Commercial Setting

It’s a common mistake: a business owner plays music through Spotify in their café, pub, salon, shop, or office, unaware that they are breaking the law. Spotify is a consumer streaming service, and its terms of use clearly prohibit playing music in public or commercial environments.

In the UK, playing music publicly—requires proper licensing, but a license doesn’t permit the use of personal systems, like Spotify. You must obtain public performance rights through organisations like PRS for Music and PPL, which manage copyright on behalf of music creators and record labels, this will only license you for music through legal means though, like TV & Radio or commercial systems like moodi – such a license won’t legalise services like Spotify.

Using an unlicensed service can result in costly legal consequences:

  • A hair salon in London was fined after PRS for Music discovered they were playing music via Spotify.
  • A café in Manchester received a legal notice and was forced to pay backdated fees for failing to secure a PPL licence.
  • Retailers across the UK have faced enforcement action, including court orders and fines, for using personal music services in-store.

These aren’t rare events—they’re real risks that can affect any business not meeting its legal obligations.


Why Spotify Doesn’t Work for Business

Here’s why Spotify isn’t a legal option for commercial environments:

📌 Terms of Service Restriction

Spotify’s own terms make it clear: their accounts are for personal, non-commercial use only. This means you’re not allowed to use Spotify to play music in public-facing spaces like shops, restaurants, gyms, or salons.

📌 No Public Performance Licensing

Spotify is not covered under PRS or PPL licences, which are required to legally play music in commercial spaces. If your music can be heard by customers or staff in a public area, you need these licences in place and a system supported by them—Spotify is not covered by them.

📌 Copyright Infringement Risks

Using Spotify in a business breaches copyright agreements and can result in action from rights holders or licensing bodies. Fines, legal fees, and reputational damage are all possible outcomes—far more costly than investing in a proper solution.


A Professional, Legal Alternative: moodi Smart Automation

moodi Smart Automation offers a fully commercially compliant music solution built specifically for business use.

✅ Fully Licensed for Commercial Use

We ensure every track is covered by the correct PRS and PPL licences, removing the legal headache of trying to manage these yourself. Depending on your license, moodi can send you monthly or quarterly playout reports to submit.

✅ Professionally Curated Audio Experiences

Our systems go beyond basic playlists—each experience is designed to suit your brand and customer profile, creating the perfect atmosphere to support your business goals.

✅ Seamless and Ad-Free

Unlike Spotify’s free tier, which interrupts playback with adverts, our system delivers uninterrupted music—keeping the focus on your environment and your customers.


Don’t put your business at risk with personal streaming services. Choose a solution that’s built for business—choose moodi Smart Automation.

If you’re running Spotify, or any other residential streaming service in your venue at the moment, or are unsure of your legality status, ask us for a free audit today so we can help!