Why Is Music Licensing So Expensive? (And When It’s Not)

TL;DR

Music licensing is not expensive by default. Costs vary widely depending on the song, how it is used, the territory involved, and when decisions are made. Many projects overpay simply because music choices are locked too late or without understanding market-specific pricing.

---

It depends on the music, the use, the territory, and the leverage

Music licensing costs vary widely because they are negotiated rather than fixed.

A song that costs €40,000 to €60,000 for a single-country TV campaign in a large market such as the US, the UK, or Germany might cost significantly less for the same use in a smaller European territory. The same song could be licensed for a few thousand euros for a festival-only film, or may be unavailable entirely if the rights holders choose not to license it.

What makes licensing expensive is usually a combination of recognition, commercial reach, territory, and the rights holder’s willingness to license for a specific context.

Figures mentioned here are illustrative and vary significantly by country, territory, and market size.

---

Why this question is confusing

In many creative fields, pricing is relatively predictable.

You can estimate what a camera rental costs, what an editor charges, or what post-production work will require.

Music licensing does not work this way.

There is no universal rate card. The same track can be quoted at very different prices depending on:

• Who is requesting the license
• How the music will be used
• The territory or territories involved
• The scale and reach of the project
• Whether the rights holders want to license at all

Creators sometimes assume high prices mean the industry is exploitative. In reality, pricing reflects the perceived value music brings to a project. A song that anchors a commercial campaign or drives brand recognition is priced differently from music used in a limited cultural or festival context.

Confusion increases when royalty-free music is available cheaply alongside commercial tracks quoted at much higher rates. This difference is not arbitrary. It reflects different licensing models, rights structures, and intended uses.

---

How this works in practice

Several factors typically influence music licensing costs.

Popularity and recognition

Well-known songs with strong audience recognition generally command higher fees. You are paying for the emotional and cultural value the music already carries.

Type of use

Advertising often costs more than film, particularly for broad commercial campaigns. In Europe, however, pricing can differ significantly for publicly funded films, broadcaster commissions, or culturally supported projects.

Territory and market size

Territory is one of the strongest price drivers in music licensing. A single-territory license in a small or mid-sized European market is priced very differently from a pan-European or worldwide campaign. Multi-territory and global rights almost always increase costs substantially.

Budget and bargaining position

Rights holders typically ask about budget and project scope. Large brands or high-reach campaigns are priced differently from independent films or limited-distribution projects.

Exclusivity and restrictions

Exclusive use or category restrictions increase licensing costs. More limited, non-exclusive use can make pricing more flexible.

Leverage and timing

If a project is locked to one specific song late in post-production, leverage is low. Early-stage decisions with alternatives available allow room for negotiation.

---

What usually goes wrong

Assuming all commercial music is unaffordable

Many creators dismiss commercial licensing entirely without realising that independent artists, catalog tracks, or limited-use licenses can be accessible.

Locking to a song too early

Building a project around one track before checking cost or availability often leads to inflated quotes or forced compromises.

Comparing royalty-free music to commercial licensing

Royalty-free libraries are affordable because the music is pre-cleared, non-exclusive, and designed for broad usability rather than cultural specificity.

Negotiating without context

Requesting quotes without understanding territory, comparable use cases, or rights holder preferences often results in unrealistic expectations and wasted time.

---

How professionals approach budgeting and negotiation

Experienced producers and music supervisors take a strategic, territory-aware approach.

They set realistic budgets

For many independent European films, this means allocating a modest overall music budget and prioritising where licensed music has the greatest impact.

They tier their music choices

Not every moment needs a recognisable track. Budgets are often focused on one or two key uses, with the rest supported by affordable or original music.

They check feasibility early

Before committing creatively, they identify rights holders and assess likely costs and availability across the relevant territories.

They keep alternatives open

Professionals avoid situations where a single song becomes the only option.

During early research phases, teams often use decision-support tools to streamline this process. Music Oracle is designed for this purpose. It helps teams:

• Identify who controls master and publishing rights
• Understand whether rights holders typically license for specific use cases
• Assess approximate pricing ranges based on project type, territory, and comparable markets

This does not replace licensing negotiations, but it helps avoid pursuing music that is unrealistic for the project’s scope or geography.

---

When music licensing is actually affordable

Royalty-free and production music libraries

Subscription or one-off libraries offer music licensed for commercial use at predictable prices.

Independent and emerging artists

Many independent artists license affordably, particularly for cultural, festival, or limited-scope projects.

Catalog and older repertoire

Deep cuts or older material are often more flexible than current chart releases.

Direct artist-controlled rights

When artists control both master and publishing rights, licensing is usually simpler and more affordable.

Festival-only or limited-territory use

Licensing for festivals or single-country release is significantly cheaper than multi-territory or worldwide use.

---

A realistic way forward

If budget flexibility exists

• Research rights holders and territory-specific pricing early
• Tier music spend strategically
• Maintain alternatives

If budgets are tight

• Use royalty-free or production music where appropriate
• Commission original music
• Focus licensed music on key moments only

If pricing a specific track

• Identify the exact recording
• Be clear about territory and use
• Request realistic quotes
• Be prepared to pivot

---

Key takeaways

• Music licensing costs vary by song, use, territory, and timing
• Large-market campaigns are priced differently from smaller European territories
• Royalty-free music is affordable but designed for different use cases
• Early feasibility checks preserve leverage
• Territory-aware budgeting leads to better creative outcomes