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I think that Valve doesn´t have a problem with you streaming music, but you should consider Spotify EULA for example, and they don´t allow broadcasting "their music". In addition, although not very likely, you could run into copyright issues if you share your stream with everybody. The risk may be low, but people have been sued for less (e.g. funny cat videos with not licensed music^^)...
Well im not gonna monetise the videos what so ever, they are just for fun streaming. I am sharing my stream with anybody, but i will not make money from streaming this, now or in the future, if that makes any difference. If it is breaking spotifys EULA i will just listen from youtube then.
There are a number of artists that don't mind if you broadcast their stuff for free (if you ask permission and give them credit, of course). A lot of the broadcasters on Twitch use these artists so that their VoDs don't get muted. It won't be artists in the Top 40 though.
I do release my own content for free, but i see your point. Thing is, its on youtube, if it was copyrighted and they cared they would remove it from there, yes?
Im just gonna give up streaming since i cant remove the music from the stream. Hopefully steam fixes this in the future, its no problem with other streaming software when you stream to twitch.
By the way: Twitch will mute your stream when it detects copyrighted music.
Here´s a quick and dirty solution for you: use a headset and set audio output to the headset while the game you stream uses your primary audio device.
Answer:Yes you can use music in streams and broadcasts.