As the owner of a cafe, are you aware of the benefits playing music on your premises can have on business profitability? Are you also aware that you need a license to play music with a copyright?
Many cafe owners are unsure of the answers to these questions. We take a look at both these areas in this post to ensure you can maximise profitability and ensure you comply with the law .
Many cafe owners are unsure of the answers to these questions. We take a look at both these areas in this post to ensure you can maximise profitability and ensure you comply with the law .
Playing music in your cafe: the benefits.
Playing music in your cafe can have a positive impact on your businesses profitability. If a customer enjoys the tunes that you've been playing then they associate they enjoyable experience with your venue. Music can encourage patrons to spend more and visit regularly. It can also help motivate staff and act as a point of difference with competitors.
The Hospitality Directory cites a study that indicated on a weekend, venues that played music had an average uplift in sales of almost 50%. On weekdays the increase was 21%.
The Hospitality Directory cites a study that indicated on a weekend, venues that played music had an average uplift in sales of almost 50%. On weekdays the increase was 21%.
Playing music in your cafe: the rules.
As a cafe owner their are restrictions around what copyright music you can play. In most cases if you are playing music that has copyright restriction in a commercial environment (i.e. your premises) then you will need to apply for a license. It is against the Copyright Act and there are penalties if you decide to simply play a CD, digital download or use a streaming service without the licence. This is because recorded music as well as music videos are considered to be the intellectual property of their creators.
There are two licences that you will need to apply for if you want to play music in your cafe:
APRA AMCOS is an Australian body that licenses organisations like those in the hospitality industry to play, perform, copy or record music. APRA AMCOS has affiliations around the world so you will be allowed to play any commercially released music from around the world. Licences start from $165 per year depending on where you plan to play music.
The Phonographic Performance Company of Australia (PPCA) is a not-for-profit music licensing company. The PPCA can offer cafe owners blank licences to play music. The licence covers almost any conceivable song that your business would wish to play.
The cost of the licence for cafe and restaurant owners depends on the number of seats in your venue, the cost of the food you serve and the number of days your premises operates. It excludes areas where music is not played. The minimum fee charged is currently $52.50 per quarter.
There are two licences that you will need to apply for if you want to play music in your cafe:
- APRA AMCOS licence. This licence covers the copyright restrictions in the song (lyrics, composition). The body represents composers and publishers
- PPCA licence. This licence covers the recording and music video of a song. The body represents recording artists and record labels.
APRA AMCOS is an Australian body that licenses organisations like those in the hospitality industry to play, perform, copy or record music. APRA AMCOS has affiliations around the world so you will be allowed to play any commercially released music from around the world. Licences start from $165 per year depending on where you plan to play music.
The Phonographic Performance Company of Australia (PPCA) is a not-for-profit music licensing company. The PPCA can offer cafe owners blank licences to play music. The licence covers almost any conceivable song that your business would wish to play.
The cost of the licence for cafe and restaurant owners depends on the number of seats in your venue, the cost of the food you serve and the number of days your premises operates. It excludes areas where music is not played. The minimum fee charged is currently $52.50 per quarter.
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