The unintended consequences of how music is licensed today

Recent coverage involving a large leisure centre operator has brought renewed attention to the cost of music licensing in the UK.

While the focus has been on a single organisation, the underlying issues are far broader and are visible across other operators and sectors.

At MMS, we are currently working with operators across a breadth of sectors including gyms, hospitality and leisure, with a consistent theme emerging.

There is an increasing disconnect between how licensing tariffs are structured and how music is actually used in practice, with growing cost implications as a result.

In the fitness industry, a combination of historic tariff assumptions and ongoing RPI-linked increases has created a compounding effect.

At the time of writing, an exercise class using original artist music costs £4.60, regardless of duration or attendance. In 2020, this was £3.28, representing over a 40% increase.

For a gym delivering 8 classes per day, this equates to £13,432 per annum in licence fees alone, compared to £9,577.60 in 2020. An increase of £3,854.40.

Across a 150-site operator, this represents an additional £578,160 annually in just a few short years.

What we are now seeing is a shift in behaviour:

• Music being reduced or removed in certain environments

• Greater use of alternative or non-licensed sources

• Increased scrutiny of whether licences reflect actual usage

These are not decisions businesses take lightly. Music plays an important role in customer experience.

But when the system becomes difficult to reconcile with day-to-day operations, change becomes inevitable.

There are also wider questions around the application of practices such as 50% surcharges for late payment and how fairness is assessed in practice.

This is not about avoiding payment for music.

It is about ensuring that licensing frameworks remain proportionate, transparent and fit for purpose, for both licensees and rights holders.

At MMS, we support creators receiving fair remuneration for the use of their music and recordings. Equally, this needs to remain sustainable for the businesses using it.

There is a risk that, if that balance is lost, more operators will look to alternative or free music solutions — reducing participation in the licensing system altogether.

If you’re experiencing similar challenges, we welcome the opportunity to share insights and contribute to a more balanced approach.