Streaming and Misuse in Business: Understanding the Revenue Gap From Unauthorized Commercial Use
Bridging the $1.4B revenue gap starts with education
In the age of digital convenience, streaming platforms like Spotify, Apple Music, and YouTube have revolutionized how we access and enjoy music.
But behind the ease of pressing play lies a growing problem that silently drains billions from the global music industry: the misuse of personal streaming accounts in commercial settings.
According to a joint study by Luminate (2021) and SAGO (2025), the U.S. music industry alone loses an estimated $1.4 billion annually due to music misuse in business environments.
Shockingly, more than 78% of small and mid-sized businesses reportedly use personal streaming services to play in-store music—a practice that may seem harmless but has serious consequences for artists, rights holders, and the industry at large.
Personal Use vs. Commercial Use: What’s the Difference?
Streaming platforms offer licensing agreements tailored to personal use. When individuals subscribe to services like Spotify or Apple Music, their license permits them to stream content for private, non-commercial enjoyment. Playing that same music in a business setting—a café, shop, or salon, for example—without a proper commercial licence violates the terms of use and bypasses the compensation channels designed for creators.
Commercial music licensing, on the other hand, ensures that artists, composers, and rights holders are fairly paid for the public performance of their work. This is typically managed by performance rights organisations (PROs) and commercial music providers who offer legal music solutions for businesses.
Alternatively, businesses subscribe to commercial music services, like Soundtrack (formerly Spotify for Business).
Why This Matters: The Hidden Cost of "Free" Music
For many business owners, the choice to use personal streaming accounts is often driven by cost-cutting or convenience. But this decision, while seemingly minor, contributes to a systemic undervaluing of creative work.
When businesses use music without appropriate licences, artists lose out on critical revenue streams, especially independent musicians who rely on every possible source of income.
In a time where artists face increasingly complex monetization challenges, closing this revenue gap is not just a legal issue—it’s an ethical one. Supporting music means more than just enjoying it; it involves respecting the ecosystem that allows it to thrive.
A Call for Industry Awareness and Education
Bridging the $1.4 billion revenue gap starts with education. Many small and mid-sized business owners are unaware that using personal streaming accounts in commercial settings is a form of copyright infringement.
Industry bodies, streaming platforms, artist managers, and PROs must work together to raise awareness and offer accessible, affordable licensing solutions.
Efforts are already underway. Some platforms now offer dedicated commercial plans with proper licensing, and PROs are expanding outreach to help businesses understand their legal obligations. However, the shift won't happen overnight. It requires a cultural change in how we value music, not just as background noise, but as a vital creative product that deserves proper recognition and remuneration.
If you’re an artist or manager, Soundtrack has put together this guide about what artists need to know about this issue and streaming music in a commercial setting.
Final Thoughts
Music enriches the business environment, shapes customer experiences, and builds memorable brand identities. But behind every track played in a café or boutique is a creator who deserves to be compensated.
Addressing the widespread misuse of personal streaming in commercial spaces isn't about punishing business owners—it's about restoring balance and fairness to an industry that thrives on creativity.
As the music industry continues to adapt to the digital age, closing the gap between usage and revenue is crucial. Respecting licensing laws and supporting ethical music use is a simple, powerful step toward sustaining the art—and the artists—that power our soundscapes.