Some restaurants have televisions for the enjoyment of their guests. Restaurants with bars often play sports games behind the bar. Today, it has become common for restaurants to play Netflix or other streaming programs for their customers to watch. Is this allowed as long as they have a subscription? Are they in danger of having copyright or licensing issues? Is it against Netflix terms of service?
The answer to the first question is no, it is not allowed. Netflix terms of service do not allow for public peformance. Playing Netflix programming in a restaurant for customers is a public performance. The same is true of any other streaming service.
Netflix itself does not provide public performance licenses to businesses like restaurants because their individual, most likely because their licensing for third-party content they provide does not allow this. Their user agreements restrict viewing to personal, non-commercial use, the same as other commercial streaming platforms.
Broadcast TV at Restaurants
It is possible for small restaurants to publicly show broadcast TV, as well as cable or satellite TV programming to their customers under specific and tightly defined circumstances. This is true as long as the TV is playing only to provide atmosphere and there is no charge to enter the premises.
Public Performance Licenses
Most cable and satellite TV providers provide public performance licenses to businesses like restaurants. These are specific packages that cover rights to the programing and are quite affordable, but it’s important to check exactly what is offered in a package before purchasing one. For example, a package that did not cover music rights for music that might be played at any time, including theme songs and jingles, could be dangerous for a restaurant.
Performing Rights Organizations (PROs) actually have individuals who travel the country hoping to hear copyrighted music being played in public with a license. Small businesses have been sued for quite innocent reasons.
Can You Play Your Own DVDs At a Restaurant?
NO! You must obtain permission from companies or their licensing agents to provide public performances of movies. Such performance is is strictly licensed! And, just because you find a movie or other program posted to YouTube doesn’t get around this licensing. Here is more complete information about licenses for Radio and TV in Restaurants and Bars
Note that this article is for general information purposes only and should not be considered a complete explanation of the legalities involved or a substitute for professional legal advice. Any public performance of Netflix or any other copyrighted programs for public viewing is done so at your own legal risk.
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