Like to play music?
You’re not alone if you like to play music in store. It can be good for team morale, and helps keep your customers in a shop-happy mood. Spotify, CDs, the radio and other music services are all great business tools – but there is a catch: if you play music in public (including in your store), you are legally required to have a OneMusic licence.
When you buy a CD, you don’t buy the rights to play that CD in public – you can only use it for your personal pleasure in a domestic setting. It’s the same with Spotify, and other services – you can’t play them in public, until you have the permission of the composers/songwriters and recording artists/record labels.
Licence fees are paid to the owners of the rights to the music. The writers, artists and record companies get paid a small fee when you use music for commercial purposes, such as playing it in-store.
OneMusic is an organisation set up by the music industry to collect music licence fees in New Zealand. OneMusic has the legal right to collect music licence fees for songs that are licensed through the Australasian Performer’s Rights Association and Recorded Music NZ (almost all music fits this category)- and, in New Zealand, it is the only organisation that is allowed to do so.
Annual licence fees are based on the kind of business you operate, and the public floor area of your store, as follows. The fees below include GST.
|Retail & General||Restaurants & Cafes|
|Floor Area||Price||Floor Area||Price|
|5000+m2||$1,889.53 + $247.00 |
per additional 2000m2 (or part thereof)
OneMusic offers a 5% prompt payment discount when the annual licence fee is paid within 14 days of invoice generation. If you play a terrestrial radio station the annual licence fee is reduced by 50%.
Even if you pay for Spotify premium or similar music services, you still need a OneMusic licence to authorise the public performance. Please note that the terms and conditions of Spotify does not extend to enable the service to be used in public.
Some suppliers of in-store music may pay the OneMusic public performance licence on your behalf – but you should check this with your provider. Background music suppliers are required to obtain a licence from One Music in order for them to reproduce and supply songs- this licence is in addition to a business requiring a public performance licence.
OneMusic is legally able to set its licence fees – and they’re not negotiable. However, the licence means you can play music in-store, whenever you like. A retail store probably plays some 57,840 songs a year, which means the cost for small retailer is something like just over half a cent per song.
No. Under the Copyright Act, only OneMusic has been authorised to grant licences and collect royalty fees for music in New Zealand.
You are legally required to pay for a OneMusic licence if you play music in your store. If you don’t pay, then you are potentially liable for prosecution.
OneMusic has a team of people in the field who visit stores for compliance – but team members don’t collect payment. You should only pay on a valid invoice.