Our hold music is just an MP3 player connected directly in, so sound isnt bad :)
Interesting ... and exactly how are you monitoring, measuring and paying APRA AMCOS (www.apraamcos.co.nz, an amazingly slow website) for the public performance of music?
Unless of course it's music you wrote and performed and have donated free and gratis to your employer.
This was an issue at my old job actually. Same thing, just some ripped MP3's until someone pointed out it wasn't allowed and could be quite costly.