Pandora for Business: A Complete Breakdown

Pandora Is Not Always Licensed for Business Use!

While playing music through Pandora radio in your restaurant, retail store, or office might seem like an easy way to provide inspiration and background music for your patrons and employees, there are several reasons why it may not be the best solution and could put you at risk of being fined.

Pandora's Terms of Service (TOS) state that using Pandora in a commercial setting requires a separate license for the music. That is unless you have Pandora for Business.  

• Advertisements: The free version of Pandora includes advertisements every few songs, subjecting those around you to unwanted ads and that studies have shown negatively affects customer experiences.  .

• Not Curated for Business Use: Pandora’s radio station and the Music Genome Project are built for consumer music enjoyment. Business music is much different, and songs need to be carefully selected. According to a study by Gant, customers stayed 42% longer in stores where music was playing. Better still, if the music was a good brand fit instead of random, sales increased 37%.

• Interruptions During Curation: Even though you can "thumbs down" songs you dislike or that don't fit the mood, this causes Pandora to skip to the next song immediately and can disrupt the music flow.

• It’s not legal: Using personal Pandora accounts to play background music in a commercial or business setting is against the law.

• Lack of international coverage: Due to licensing restrictions, Pandora is offered only in the United States.

As an alternative to Pandora’s consumer-focused service, business-focused music services like Soundtrack (formerly Spotify for Business) are licensed specifically for business use.

Pandora does, however, have partnerships with other entities through which it sells a business offering known as Pandora for Business, which we’ll explore below.

How Does Business Music Licensing Work?

Before we break down the details of Pandora for Business, let’s quickly review how music is licensed for business use.

Music licensing for businesses involves obtaining permission to play copyrighted music in a public or commercial setting. This process ensures that artists, songwriters, and copyright holders are compensated for the use of their work.

When you play music in a business setting, it is considered a public performance. Public performance rights are managed by performing rights organizations (PROs) like BMI, ASCAP, SESAC, and GMR.

These organizations collect licensing fees on behalf of the music creators and distribute royalties.

Businesses need to obtain a public performance license from one or more of these PROs depending on the individual songwriter of each song they play. In most cases, businesses will need licenses from multiple PROs.

Once you have the appropriate licenses, you must ensure compliance by playing only the licensed music. These organizations have enforcement teams that monitor businesses for compliance. Failing to obtain the proper licenses can result in fines or sometimes legal action. 

These licenses are typically covered as part of a subscription to business services like Soundtrack or, as discussed below, Pandora for Business.

Can You Legally Use Pandora in Your Business?

Due to licensing restrictions, you can not use the consumer version of Pandora in your business.

This is stated clearly on Pandora’s website:

For business use, Pandora has partnered with both Mood Media and CloudCover to offer different Pandora for Business packages.

Both of these are licensed specifically for business use via public performance licenses from the performance rights organizations (PROs) and have a selection of playlists that are built specifically for business use.

They also let you use the features found on Pandora’s consumer version, where you can curate a personalized radio station that’s unique to your business.

The drawback, however, is that Pandora doesn’t let you pick specific songs and build your own playlist. According to reviews on G2, the playlists can also be quite repetitive, which can detract from the customer experience and annoy employees.

As an alternative, Soundtrack offers curated playlists with little repetition, AI playlist creation tools, and on-demand functionality that gives you the ability to pick and choose exactly what songs you want to play, and when.

What’s the Difference Between Pandora for Business by Mood Media and Pandora CloudCover?

While both services are similar in that they offer commercially licensed music streaming via Pandora, there are some small differences.

Below, we’ll break down the differences in features and pricing.

Features

Pandora for Business by Mood Media and Pandora CloudCover both offer access to the basic features of Pandora with proper licensing for business use. This includes:

• The ability to curate your own radio station with Pandora’s like and dislike features.

• A few hundred playlists curated specifically for business use.

• Access to Pandora’s own stations.

Additionally, both services provide:

• Automated scheduling (​​a feature that allows businesses to schedule music based on specific times and days of the week).

• Audio messaging, so you can insert promotional messages between songs for sales or special events – typically for an additional cost. 

• Pandora CloudCover’s Messaging Plan starts at $26.95/month per location and includes the Manage Plan ($21.50/month).

• An explicit content filter.

• Dedicated hardware and mobile apps.

• Zone control to play different Pandora stations in different parts of your business (for example, the waiting room might play something different than the back office).

The feature that neither offering provides is the ability to choose specific songs that you want to play. Because of Pandora’s licensing restrictions, there is no on-demand functionality.

If you want all of the above plus on-demand functionality where you can pick specific songs and build your own playlists by hand, then Soundtrack is a better bet.

Pricing

Mood Media has one Pandora for Business package that starts at $26.95/month when billed annually.

Pandora CloudCover, however, has multiple packages to choose from depending on your needs, ranging from $16.95/month to $26.95/month when billed annually:

Without the ability to choose your own songs, this can feel limiting. Soundtrack shares features with these services, but includes on-demand access to music, meaning you can choose songs and build playlists as you wish.

Soundtrack’s pricing is similar to the Pandora business offerings shown above, but includes:

• Full legal licensing.

• 1,300+ Soundtrack playlists, including artist playlists.

• Up to 90% savings on ASCAP, BMI, and GMR licenses.

• Custom stations curated for brand-fit music.

• Drag-and-drop scheduling.

• Explicit lyrics filter.

• On-demand streaming.

• Spotify playlist import tools.

• The ability to store and play music offline (and the necessary special licenses).

If Pandora doesn’t fit your business's needs or you want more flexibility in your music choices, Soundtrack makes a great Pandora for Business alternative.

Pandora for Business FAQ

Here are answers to other common questions about Pandora for Business.

Does a Pandora for Business subscription cover licensing from the PROs?

Yes, if you have a Pandora for Business subscription either through Mood Media’s Pandora for Business offering or through Pandora CloudCover, you’re covered in terms of PRO licensing.

When you use Pandora for Business, your music is already fully licensed for standard business use. Mood Media and CloudCover work with performing rights agencies such as ASCAP and BMI to obtain those licensing rights for you on your behalf.

Soundtrack does the same, and can even save you as much as 90% on included ASCAP, BMI, and GMR licenses!

Can Pandora be a business expense?

If you’re using Pandora for Business, then yes, it can be considered a business expense. Using the consumer version of Pandora in a business setting is illegal and should not be considered a business expense.

How much does Pandora for Business cost?

Depending on who you go with (Mood Media or CloudCover), Pandora for Business pricing ranges from $16.95/month to $26.95/month when billed annually.

Pandora CloudCover offers monthly billing that ranges from $18.95/month to $26.95/month.

Mood Media’s Pandora for Business is $26.95/month, billed annually.

As an alternative, Soundtrack (formerly Spotify for Business) is also priced based on your needs but offers on-demand access to music, while Pandora is radio-focused only.

How does Pandora for Business work?

Pandora for Business provides licensed internet radio services for commercial environments like restaurants, retail stores, and offices.

Businesses subscribe to the service for a monthly fee, which includes the cost of business music licensing. This partnership ensures that all music played through Pandora for Business is fully licensed, eliminating the need for businesses to obtain separate licenses from performing rights organizations (PROs) such as ASCAP and BMI.

Upon subscribing, businesses can download an app or receive a device that connects to their sound system and streams music from Pandora. The setup is straightforward, requiring only an internet connection.

Businesses can customize their music stations based on specific preferences and desired ambiance, taking advantage of Pandora’s Music Genome Project. The business service is ad-free, meaning you can stream music without interruptions that might bother customers or employees. Some plans also offer remote management options, allowing business owners to control the music from any location.

The key benefit of services like Pandora for Business or Soundtrack is compliance with all legal aspects of music licensing. By managing performance rights and ensuring public performance compliance, these services allow businesses to play music without worrying about copyright violations.

Does Pandora for Business cover live music?

Pandora for Business subscriptions do not cover live music. The service is specifically designed to stream recorded music legally in commercial settings like restaurants, retail stores, and offices.

The licenses included with the subscription do not cover music from other sources. Karaoke, DJs, jukeboxes, and live music require separate additional licenses from the PROs.

Does Pandora for Business work without an internet connection?

No, Pandora for Business will not work without an internet connection. It’s for streaming music only and does not store music or content on the media player. This type of storage requires a separate type of license.

Soundtrack, however, can store music offline. They have special licenses that allow for offline storage so that you can keep the music going even without a regular internet connection.

Can I play my personal Pandora account in my business if I’m paying for their premium subscription? Songwriters get paid from that, right?

No, you cannot legally play Pandora’s consumer service in your business even if you’re paying for their premium subscription (Pandora Premium). Pandora’s premium subscriptions (Pandora Plus and Pandora Premium) are intended for personal use only and do not cover the public performance rights required for commercial settings.

While songwriters do get paid a portion of your Pandora Plus or Pandora Premium subscription, the rates for music use in a business setting are different and have different payment structures to pay out those licenses. This is where either Pandora for Business or Soundtrack can help.

What is the difference between Pandora for Business and Pandora Plus/Premium?

Pandora for Business and Pandora Plus/Premium serve different purposes and target different audiences.

Here are the key differences between the two:

Pandora for Business

1. Intended Use: Designed specifically for commercial use in environments such as restaurants, retail stores, offices, and other public spaces.

2. Licensing: Includes all necessary public performance licenses, ensuring businesses comply with copyright laws and pay royalties to artists and copyright holders.

3. Ad-Free Music: Provides uninterrupted, ad-free music suitable for business environments.

4. Customization: Businesses can create and customize music stations based on their preferences and the atmosphere they want to create.

5. Legal Assurance: Ensures compliance with public performance laws, relieving businesses of the legal responsibilities related to music licensing.

6. Customer Support: Includes support from Mood Media or CloudCover for setup, troubleshooting, and service-related queries.

Pandora Plus/Premium (Not Licensed for Business Use)

1. Intended Use: Designed for personal use, intended for individual listeners rather than for public or commercial settings.

2. Licensing: Personal use licenses do not cover public performance. Using these services in a business setting without proper licensing is a violation of copyright laws.

3. Subscription Tiers:

4. Pandora Plus: An ad-free subscription service that offers unlimited skips, replays, and offline listening, but focuses on radio-style listening without on-demand access to specific songs.

5. Pandora Premium: An on-demand streaming service that provides all the features of Pandora Plus, along with the ability to search and play any song, create playlists, and download music for offline listening.

6. Device Usage: Intended for use on personal devices including mobile devices like Android and iOs smartphones, tablets, and computers, rather than dedicated commercial streaming devices.

7. Customization: Allows individual users to create personalized music stations and playlists based on their preferences and listening habits.

Pandora for Business is tailored for commercial use, providing legally compliant, ad-free music streaming with all necessary public performance licenses. It ensures that businesses can play music legally and provides a seamless, customizable music experience suitable for public spaces.

Pandora Plus/Premium is designed for personal use, offering various levels of ad-free listening and on-demand music streaming features.

These subscriptions do not include the licenses required for public performance and are not legally suitable for use in commercial settings. To play music legally in a business environment, businesses must use Pandora for Business or an alternative like Soundtrack.

Ready to get started?

See how Soundtrack works for you and your business. Get our most exclusive features with a no-obligation, 14-day trial, unlocking everything available in Soundtrack Unlimited.