ASCAP vs BMI vs SESAC: Why US Restaurants and Hotels Need All Three (2026)

US music licensing is more complicated than most countries, and US restaurant and hotel operators consistently get blindsided by it. The core issue: in the United States there isn't one music rights body, there are at least four (ASCAP, BMI, SESAC, and the newer GMR), and they all need to be licensed separately if you play a broad music catalogue. Skipping any one of them is the most common compliance gap we see — and the most common source of unexpected legal letters.

This guide walks through what each PRO does, who actually needs which licences, and realistic 2026 costs.

It's vendor-neutral. Rafilis makes Rafilis Multizone, a multi-zone music management platform used in hospitality venues. But our software is not a substitute for these licences. The PRO licences cover your right to play the music to customers; the software just delivers the music to your zones.

What a PRO is and why the US has multiple

A Performing Rights Organisation (PRO) is a body that collects licence fees from venues that perform copyrighted music publicly and distributes those fees to its member songwriters, composers, and music publishers.

In most countries one PRO has a near-monopoly: PRS for Music in the UK, GEMA in Germany, SACEM in France, MESAM in Turkey. In the United States, multiple PROs compete for membership, and writers choose which one to affiliate with. As a venue operator, you can't choose which to license from — you license from all PROs that cover any of the music you play. Practically, this means all of them.

The four major US PROs:

There's also SoundExchange, which handles digital performance royalties for sound recordings — this is relevant for internet radio and webcasting, but generally not for restaurant and hotel background music.

ASCAP — what it covers

ASCAP (American Society of Composers, Authors and Publishers) is the largest and oldest US PRO. It licenses the non-dramatic public performance of musical works written by its members.

For restaurants, ASCAP's General Licensing programme uses a rate card based on venue size, capacity, music use intensity, and whether music is live or recorded:

• Recorded music only, no dancing, no admission charge: $300–$600/year for a 50-seat restaurant
• Recorded music plus occasional live performance: $400–$900/year
• Bar with live music and/or DJ regularly: $900–$2,500/year
• Nightclub with consistent DJ/live music programming: $2,000–$6,000/year

ASCAP rates rise annually and are negotiable through a venue's industry association (NRA, AHLA, etc.) — usually marginal savings, but worth asking.

BMI — what it covers

BMI (Broadcast Music, Inc.) operates similarly to ASCAP, with a slightly different roster and different rate card. BMI rates are typically comparable to ASCAP within 10–20%, sometimes slightly lower for small venues.

For most US restaurants, BMI's annual fee is roughly parallel to ASCAP's. Many restaurant operators wrongly assume that having BMI means they don't need ASCAP — because both label themselves "the music licensing organisation". They don't compete by coverage; they compete by membership. Different songwriters affiliate with different PROs.

If your playlist includes any modern hits, country, pop, rock, hip-hop, R&B, or jazz — and almost any commercial playlist does — you have songs from both ASCAP and BMI writers. Both licences required.

SESAC — the missed third

SESAC (formerly Society of European Stage Authors and Composers) is smaller, more selective, and operates by invitation only. It represents fewer writers but they include some major names — Bob Dylan, Neil Diamond, Adele, Mumford & Sons.

Because SESAC is smaller, many restaurant operators believe they can skip it. This is the most common compliance gap. SESAC enforcement is meaningfully active — their field officers conduct routine venue inspections, and a SESAC-only lawsuit can run statutory damages of $750–$30,000 per work infringed.

A SESAC licence for a typical restaurant runs $200–$500/year. It's not a major cost, and it closes the most common gap.

GMR — the newer player

Global Music Rights launched in 2013, founded by music attorney Irving Azoff. It's smaller — around 90 writers — but the roster is high-profile: Drake, Bruce Springsteen, Pharrell, Bruno Mars, John Lennon's estate, Steely Dan, and others.

GMR licensing was contested in the early years (there were lawsuits over rate-setting). The current state in 2026: most major venues have GMR licences alongside ASCAP/BMI/SESAC. Smaller restaurants often still don't, but the gap is closing as GMR pursues unlicensed venues.

A GMR licence for a restaurant typically runs $150–$1,000/year depending on size.

The "Homestyle Exemption" (3,750 sq ft rule)

Under §110(5)(B) of the US Copyright Act (added by the 1998 Fairness in Music Licensing Act), some small establishments are exempt from PRO licensing for broadcast music only:

• Establishments under 3,750 sq ft total can play music received from radio, TV, cable, satellite, with no PRO licence required, provided:

- No more than 6 loudspeakers, max 4 per room - No more than 4 audiovisual devices, max 1 per room - No charge to listen - Music isn't transmitted beyond the establishment

• Establishments over 3,750 sq ft can also use the exemption with the same equipment limits, but their total floor space disqualifies them from the smaller-venue version.

Critical limitation: This exemption applies only to music received via broadcast — radio, TV, cable, satellite. It does NOT cover:

• Spotify, Pandora, Apple Music (any streaming)
• Recorded music files (CDs, MP3s, hard drive libraries)
• Live performance (bands, DJs, karaoke)
• Music played through a music-service provider like Cloud Cover or Mood Media

For modern restaurants and hotels — virtually all of which use some form of streaming or curated playback rather than broadcast radio — the Homestyle Exemption rarely applies. Don't rely on it without confirming with a music-rights attorney.

Realistic cost stacking for a US restaurant

For a typical 60-seat US full-service restaurant playing recorded music throughout service hours:

For a 120-seat bar/restaurant with regular DJ nights:

For a 200-room US hotel with multiple F&B outlets, function rooms, and a fitness centre:

These are illustrative. Each PRO will quote based on your specific square footage, capacity, music use intensity, hours of operation, and whether you have live music or DJ programming.

What happens if you don't license

Enforcement in the US is meaningful. Each PRO maintains field staff that physically visit commercial venues. The pattern is typically:

1. First visit: field officer identifies themselves, observes music being played, asks whether you have a current licence
2. Letter follows: if you're unlicensed, the PRO sends a formal demand
3. Negotiation phase: PROs are open to negotiated settlement at the standard rate (no penalty), typically over the full back period (often 1–3 years)
4. Legal phase: if you ignore or resist, the PRO files suit. Under US Copyright Act, statutory damages range $750–$30,000 per work infringed. A typical case alleges 10–50 works, putting potential damages at $7,500–$1,500,000.

Statutory damages are not theoretical. PROs file dozens of restaurant cases per year. Many settle at $25,000–$100,000 in damages plus the licensee's legal fees — vastly more than the few hundred dollars annual licence would have cost.

Common US restaurant licensing mistakes

1. Assuming the music service handles everything. This is the single most common mistake. Soundtrack Your Brand's standard plan in the US does not include the PRO licences — they only cover the recording rights they license from labels. You still need ASCAP/BMI/SESAC direct (and increasingly GMR). Mood Media's all-inclusive packages do cover all PROs but cost more. Cloud Cover Music bundles ASCAP+BMI+SESAC. Verify in writing what your specific contract bundles.

2. Believing one PRO is enough. ASCAP doesn't cover BMI's catalogue. BMI doesn't cover SESAC's. You need licences for every PRO whose writers appear in your playlist. For the catalogue of any commercial music service, this is all of them.

3. Skipping SESAC because "it's small". SESAC is small in roster but enforces aggressively. The licence is cheap relative to settlement costs. Don't skip it.

4. Misapplying the Homestyle Exemption. Operating a coffee shop with Spotify Premium playing while believing you qualify for the 3,750 sq ft exemption — you don't, because Spotify is streaming, not broadcast.

5. Not renewing or updating annually. PRO licences renew annually, and your declared profile (capacity, square footage, music use) needs updating if your venue changes. An old licence calculated against a smaller footprint won't protect you when audited.

6. Believing radio in the bedroom is exempt. US hotels: bedroom TVs and radios are NOT exempt under the Homestyle Exemption (that's for the venue's public spaces). Bedroom music typically falls under hotel-specific rates with each PRO.

Practical compliance checklist for US operators

1. List every space where music is audible — restaurants, bars, lobby, function rooms, gym, pool, terrace, restrooms, corridors, lifts
2. Get a written quote from each PRO — ASCAP, BMI, SESAC, and GMR (free to request)
3. Compare to what your music service bundles — many ops are paying twice; some are paying nothing
4. Sign the missing licences direct with PROs. Most can be set up online in under 30 minutes
5. Keep proof of payment and renewal dates on file
6. Update annually when venue changes — new rooms, expanded capacity, new music programming

How music software fits in compliance

A well-structured multi-zone audio system doesn't eliminate the licence requirement, but it does help with documentation:

• Clear zone definitions match the zones you declared to PROs
• Schedule logs document what played when and where
• Separation of background vs. live event programming prevents misclassification

Rafilis Multizone handles this structuring automatically. The PRO licensing remains your obligation, but the audit trail becomes much cleaner.

Related reading

For broader context:

• The complete guide to hotel background music systems — covers the operational and budget side
• Multi-zone audio for hotels: how it works — technical architecture
• Restaurant & hotel music licensing — global comparison — how US compares internationally

US music licensing is more complex than other countries, but the rules are clear. Licensing all four PROs costs a US restaurant roughly $1,000–$4,000/year. Litigation costs tens of thousands. There is no economically rational path to non-compliance — and the cost of compliance is fully predictable when properly budgeted.