MONTREAL – Music distributor Stingray recently put market research firm Leger to work to study the music being played in the background inside Canadian small businesses, and it found most have no idea they need to be paying for the music being used in their public spaces.
According to the study, while music is considered essential by 71% of respondents, only 11% pay for the rights. Also, according to the report, 63% of those surveyed are unaware of any regulation preventing them from using a private streaming account (like Spotify) to broadcast music publicly in their business, reads the release. The study also says 48% of business owners consider it important to broadcast Canadian music but only 18% said they are willing to pay for it.
The study also found 82% of small business owners are unaware of the applicable legislation and of their legal obligations to pay for music.
“Without a license, they are liable for copyright infringement fines and performing rights societies may decide to pursue the matter through legal channels,” notes the Stingray press release.
The research “makes abundantly clear that the work of music creators is often taken for granted,” said Mathieu Péloquin, Stingray’s SVP marketing and content, in the press release. “While we commissioned this study to gain a better understanding of the public use of music for our commercial division Stingray Business, we are happy to share the conclusions with the entire music industry. The results reveal that there is a pressing need for stakeholders, policy-makers, and business owners to join forces to address this crucial issue in support of our artists. Today’s findings confirm that further efforts are required to strengthen and communicate the existing legal framework.”
The survey was conducted among 510 small businesses (one to nine employees) across Canada with a physical space open to customers. All survey respondents are owners, managers or assistant managers in the following industries: retail, restaurants and bars, personal services (hairdressers, dry cleaners, and photographers), leisure and entertainment services, hospitality, and veterinary services.
