Cover versions still require public performance licenses. Restaurants and bars typically pay for licenses from organizations like ASCAP and BMI, who distribute

Cover versions still require public performance licenses. Restaurants and bars typically pay for licenses from organizations like ASCAP and BMI, who distribute royalties to songwriters (rather than artists or record companies). Those licenses can cover recorded music playback and/or live music (usually with higher fees.) However, streaming and satellite radio stations have their own license regimes, which may include royalties to artists and to record companies (for streaming at least). So a shift to cover versions (perhaps owned by the satellite or streaming network itself) could lower payments by the network, so that could provide motivation for cover versions.