This Might Be The Reason You Never Hear Music Playing At Costco - Tasting Table

"Music played where members can hear the music is considered a public performance and is protected by copyright laws. Costco does not have a license for such use. Any music in a public place where people gather requires a license."

"There are strict rules about what can and cannot be played in a public space, thanks to the Copyright Act, which is meant to protect the integrity of artists and performers. Playing music in a large space, such as Costco's warehouses, is considered a public performance, which would mean Costco needs to pay specific licensing."

"If the company doesn't obtain proper licensing, it risks lawsuits from organizations like ASCAP, BMI, or SESAC, which monitor these things to ensure that artists are properly compensated. The licenses to play music can cost anywhere from a few hundred to a few thousand dollars."

Most grocery stores like Publix, Harris Teeter, and Kroger play background music in their stores, including holiday songs and current pop hits. Costco stands out as a rare exception by not playing any music in its warehouses. While Costco has never officially confirmed its reasoning, employees and customers speculate the decision stems from copyright concerns. Playing music in public spaces constitutes a public performance under copyright law, requiring specific licensing from organizations like ASCAP, BMI, or SESAC. These licenses can cost hundreds to thousands of dollars. Without proper licensing, retailers risk lawsuits from copyright monitoring organizations designed to ensure artists receive proper compensation.

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