music industry

Music Industry Loses $2.65 Billion a Year Over Improper Licensing by Small Businesses


Songs are supposed to be licensed under copyright laws. It is different from the laws controlling personal streaming services such as Apple and Spotify. As per Nielsen Music did research, it was found that it is only seventeen percent of the small businesses that have been licensed to play songs. It is causing the Music industry to lose 2.65 billion dollars every year.

How the music industry is losing money

Most small businesses think that the private music account may be used as a background song in a business setting.

A study showed that a lot of money is getting lost every year because most businesses do not adequately use the services for streaming songs.

Nielsen Music interviewed a total of five thousand small businesses in Spain, Sweden, America, France, Italy, Germany, and the UK. They found that the industry is losing 2.65 billion dollars each year.

The interviewer estimated that 29.4 businesses worldwide stream music at their shops. Eighty-eight percent play music each day or at least four to five times a week. Twelve percent play the songs less than four days each week. The interviewer also found that 21.3 million companies utilize consumer music services instead of getting the streaming license.

The rights owners lose around 11.96 dollars every month because of small businesses that utilize free streaming services. This number goes down to 8.33 dollars each month for those who subscribe to the songs service.

As per the copyright law in most nations, hotels, stores, book of ra online venues and other public places need to have a music streaming license. Eighty-three percent of 21.3 million small businesses illegally use personal music services.

Why small businesses do this:

The people who own small businesses do not know that they are supposed to have a streaming license.

As per most small business people, a private music account allows people to stream songs in their business background. 


Finding out that the music industry is losing a lot of money because of improper licensing is a wake-up call to those creating music. They are now aware that they are losing their money, and small business owners now also know that they have been misusing the music streaming service. If you have any questions or want to comment on this topic, feel free to write to us.

This article was composed of a Thomas Glare who is also a song producer. He wants to enlighten artists about how they are being deprived of their income. He believes that by making people aware of the losses brought about by not knowing about proper licensing, the lives of artists will improve.

About RJ Frometa

Head Honcho, Editor in Chief and writer here on VENTS. I don't like walking on the beach, but I love playing the guitar and geeking out about music. I am also a movie maniac and 6 hours sleeper.

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