What is PPL PRS? TheMusicLicence explained for UK businesses

If you play music in a UK business you’ve probably seen invoices or letters mentioning PPL, PRS and “TheMusicLicence” — and it isn’t always clear who’s who, or why you’re paying them. Here’s the plain-English version.

What is PPL PRS?

PPL PRS Ltd is a joint venture set up by PPL and PRS for Music. Since 2018 it issues a single licence — TheMusicLicence — that covers the rights of both organisations for businesses that play music in public. So instead of dealing with PPL and PRS separately, most businesses now hold one licence administered by PPL PRS Ltd.

What does PPL PRS stand for?

• PPL — Phonographic Performance Limited, which collects royalties for record companies and performers (the actual sound recording).
• PRS — PRS for Music, the Performing Right Society, which collects for songwriters, composers and music publishers (the underlying song).
• PPL PRS Ltd — the joint company the two set up to issue and administer TheMusicLicence together.

The difference between PPL and PRS

They represent two different sets of rights holders. PRS for Music pays the people who wrote and published the song; PPL pays the record label and performers who made the specific recording. Because playing a commercial track uses both the composition and the recording, most businesses need permission from both — which is exactly why the two were combined into a single licence.

Is PPL PRS a legal requirement?

If you play recorded or live music in a public or business setting, you generally need permission from the copyright holders, and TheMusicLicence is how that permission is granted. There are narrow exceptions — for example genuinely royalty-free or specifically-licensed music — but for most shops, restaurants, gyms, salons, offices and showrooms it applies. Using music without the appropriate licence can lead to enforcement action.

The first-year higher rate and backdating

If you were already playing music before getting licensed, expect two things on the first bill. PRS charges a higher royalty rate — the standard rate plus 50% — but only for the first year; it should revert to the standard rate every year afterwards. PPL applies a similar 50% surcharge for the prior unlicensed use. A licence still billed at standard-plus-50% in year two or beyond is a clear, provable overcharge — one of the most common errors we find. Separately, a business that played music unlicensed can be liable for up to six years of prior use (the limitation period under the Limitation Act 1980).

How much does a PPL PRS licence cost?

There’s no flat fee. TheMusicLicence is calculated from your specific premises and how you use music — the customer-audible floor area, whether it’s background music or live/DJ/events, your opening hours, and the number of sites. A small shop might pay a few hundred pounds a year; the largest commercial users can be billed several thousand. Because there are so many inputs, invoices are frequently inaccurate — usually not in the customer’s favour.

Can you cancel or “avoid” PPL PRS?

If you genuinely stop playing music, or only ever use royalty-free or specifically-licensed music, a licence may not be required. But if you play commercial music to customers or staff, you can’t simply opt out — that isn’t compliant and it invites enforcement. What you can do is make sure you’re on the correct tariff, that your premises and usage are recorded accurately, and that you’re not paying for more than you actually use.

Where MLC fits in

We’re an independent consultancy — we don’t work for PPL PRS Ltd, PPL or PRS for Music. Our job is to check that your licence is correct and that you’re on the lowest compliant tariff, so you stay covered without overpaying. If you’d like a second opinion, send us your invoices and we’ll review them for free.

This guide is general information, not legal advice, and MLC is an independent consultancy — not affiliated with PPL PRS Ltd, PRS for Music or PPL.