For many business owners, music licensing is an elephant in the room: often misunderstood, sometimes overlooked, but legally vital.
A groundbreaking report created by OneMusic and Inside Retail highlights the indisputable fact that consumers will respond positively not only to the right type of music being played in stores, but also to proof that businesses are complying with music licensing laws, potentially penalising those who are not.
Research covering 1250 consumers across Australia and New Zealand is the basis of the report, The Right Music Sets the Mood for Greater Business, which advises retailers on how to choose the right music to encourage shoppers to linger. It further concludes that music is not just an extra; it is a vital commercial tool with measurable impact on dwell time, spend, and customer loyalty, noting that across Australia and Aotearoa New Zealand, about 40 per cent of shoppers have walked out of a store because of the music playing.
Consumers may be unaware that licensing is the law
On both sides of the Tasman, most consumers have no idea that the businesses they visit need permission to play music publicly.
In Australia, for instance, 56 per cent of consumers are unaware that playing music in a commercial setting requires a licence. That knowledge gap has created a grey zone where some operators are prepared to gamble on copyright compliance, calculating that the risk of being caught is low and customer scrutiny is almost non-existent.
But that calculation is becoming increasingly short-sighted. Ignorance is not a defence; it is an operational and reputational risk. As awareness of licensing obligations grows, so too does consumer expectation that businesses operate ethically and within the law.
Customers may not understand the finer points of copyright legislation, but they understand the difference between legitimate operators and businesses cutting corners. And when given a visible signal that a venue is licensed to play music, consumers respond positively.
Asked how they would feel about seeing a “Licensed to Play” sticker displayed in a business window, sentiment was strongly favourable across both Australia and New Zealand.
In Australia, 27 per cent of consumers said they viewed it positively because it showed the business was “doing the right thing”. In New Zealand, that figure climbed to 30 per cent.
The commercial takeaway is clear: compliance is not just a legal obligation, it is a brand signal. Publicly demonstrating that your business has permission to use music sends a subtle but powerful message to customers that you are a credible operator that respects the value chain and pays suppliers properly – whether that supplier is a local coffee roaster, a technology provider, or a songwriter.
The reverse is also true.
What happens when a venue refuses to obtain a licence? A meaningful minority of consumers will judge the business for it, and some are prepared to take their spending elsewhere.
Eleven per cent of Australians and 12 per cent of New Zealanders say they would view a non-compliant venue negatively and may avoid businesses that fail to meet their legal obligations.
Three key takeaways
OneMusic’s report concludes with three key pieces of advice for retailers when it comes to ensuring they play music that is licensed:
Get compliant: Compliance shields you from copyright infringement in both jurisdictions.
Display the sticker and the logo: It is a low-effort trust signal that resonates with around 30 per cent of your customers and alienates almost no one.
Train your team: Ensure staff understand why you pay for permission to use music so they can confidently explain it (“We support the artists we play”), turning a legal obligation into a story that strengthens your brand.
Equally importantly, OneMusic urges retailers not to hide their licence in a drawer. “Treat it as a trust asset.”
‘Real’ music works
Some retailers and other businesses may choose to take an alternative course to licensing – but they do so at their peril, explains OneMusic. Data in the report shows that royalty-free music streams are, in fact, “a false economy” – especially if your audience includes anyone under 40.
In Australia, 75 per cent of Gen Z consumers can instantly tell the difference between “real” music (artists they know) and “elevator music” (generic stock tracks).
In New Zealand, the detection rate is similarly high at 70 per cent among Gen Z.
“For younger customers in both markets, hearing generic tracks indicates that the experience is “budget”, “uncool”, or “inauthentic”. If your brand is about quality, your playlist must feature quality artists,” concludes OneMusic.
At the same time, older consumers, those aged 55 to 74 in both markets, are the most likely to judge non-compliance harshly.
“Compliance is simply the expected standard of a professional business,” concludes OneMusic. “Can you afford to risk your business’s reputation for the false economy of dodging a music license?”
