Short answer: because music is protected by copyright, and playing it in a business is a "public performance" that requires permission (a license). Without the right license you risk cease-and-desist notices, fines, lawsuits, and takedowns of videos that use the music.

What that means in practice

• Copyright owners have exclusive public-performance rights. When you play recorded or live music where customers, clients, or the public can hear it, you’re performing it publicly and need permission.
• Permission is typically obtained through:
  • Blanket public-performance licenses from Performing Rights Organizations (PROs) such as ASCAP, BMI, SESAC and GMR (these cover the right to play compositions represented by each PRO), and/or
  • Commercial/background-music services that provide licensed catalogs and handle rights on your behalf (these are sold for retail/restaurant/office use), or
  • Direct licenses from rights-holders (for unusual situations), or
  • Proper commercial licenses for “royalty‑free” or production-music libraries (make sure the license explicitly covers business/commercial use).
• Important distinctions:
  • Consumer streaming services (Spotify, Apple Music, YouTube, etc.) are licensed for personal use only; their terms usually forbid business use and don’t cover public-performance rights.
  • Sync licenses (for syncing music to video) and master-use licenses (for using a specific recorded version) are separate from public-performance licenses—so using music in promotional videos or on social media often needs additional permissions.
  • Public domain music and music you own the rights to (original compositions where you own the copyright or have exclusive license) do not require a public-performance license.

Risks of not licensing

• Cease-and-desist letters from rights-holders or PROs.
• Monetary damages, statutory penalties and legal fees if a copyright owner sues.
• Takedowns or muting of videos that use copyrighted music online.
• Possible disruption to business operations while resolving disputes.

Practical options for businesses

• Buy blanket licenses from the major PROs if you’ll be playing a wide range of commercial music.
• Subscribe to a commercial background-music provider (these deliver playlists and handle licensing/royalties).
• Use a commercial license from a royalty‑free or production-music library that explicitly permits public/commercial use.
• Commission or license original music for exclusive use.
• If you only play music for employees and not customers (small private workplace with no public access), you may be in a different legal category—but don’t assume; check the law or consult counsel.

Quick checklist for a business owner

• Stop using consumer streaming accounts for public playback.
• Confirm what music you play (radio, playlists, TVs, videos) and whether it’s covered.
• Obtain the appropriate PRO licenses or use a licensed commercial service.
• Keep copies of licenses/contracts and receipts.
• For videos and marketing, secure sync/master licenses before publishing.

Bottom line Music used in a business isn’t the same as music for personal enjoyment. Licensing protects copyright holders and protects your business from legal and financial risk — so get the right commercial/public-performance and any additional sync/master rights for the ways you use music. If you want, I can list typical licensing providers or recommend steps tailored to your business type (retail, restaurant, office, or online content).