Starting an internet radio station is legal. Broadcasting music online, however, requires specific licences — and understanding which ones you need is essential before you go live with commercial music.
This guide explains exactly what licences an internet radio station needs, what they cost, and how to apply, covering the United States, United Kingdom, and Canada.
Is it legal to make your own internet radio station?
Yes — it is completely legal to start your own internet radio station. You can broadcast your own original content, talk shows, or any audio you have the rights to, with no licence required.
The licensing requirement only applies when you play music you don’t own. Commercial recordings are protected by copyright, and playing them on an internet radio stream requires licences from the rights holders.
Why internet radio has different rules than streaming services
Internet radio (streaming to listeners who cannot choose individual tracks) operates under a different legal framework than on-demand streaming services like Spotify. This distinction matters for licensing:
- Webcasting / internet radio = you control the playlist; listeners tune in; governed by “statutory licence” provisions in the US and similar schemes elsewhere
- Interactive/on-demand streaming = listeners choose specific tracks; requires direct licensing deals with each record label
This guide covers the webcasting/internet radio model.
Licences required in the United States
Internet radio stations in the US need two types of licences to play commercial music:
1. Sound recording (master) rights — SoundExchange
SoundExchange collects and distributes royalties for digital performances of sound recordings. Every internet radio station playing commercial music in the US must pay SoundExchange royalties.
The rate is set by the Copyright Royalty Board (CRB) and calculated per performance (one play of one song to one listener). Rates are updated periodically.
How to calculate your SoundExchange cost:
- A station with an average of 100 simultaneous listeners, playing 15 songs per hour, broadcasting 8 hours/day:
- 100 listeners × 15 songs/hour × 8 hours = 12,000 performances/day
- At $0.0023/performance: approximately $27.60/day, $840/month
2. Composition (publishing) rights — PROs
Composition rights cover the songwriting (melody + lyrics) separately from the recording. In the US, you need licences from one or more of:
- ASCAP (American Society of Composers, Authors and Publishers) — ascap.com
- BMI (Broadcast Music, Inc.) — bmi.com
- SESAC — sesac.com (invitation-only for most broadcasters; handles a smaller catalogue)
- GMR (Global Music Rights) — covers a smaller but growing catalogue
Most stations need licences from both ASCAP and BMI at minimum. Each organisation offers blanket licences that cover their entire catalogue, with rates based on audience size and revenue.
ASCAP and BMI licensing cost: rates vary by station size and whether the station is commercial or non-commercial. Small webcasters may pay a minimum annual fee. Check ascap.com and bmi.com for current rate schedules.
Non-commercial and educational stations (US)
Non-commercial and educational (NCE) internet radio stations may qualify for reduced royalty rates from SoundExchange. ASCAP and BMI also offer non-commercial licences at reduced rates. Verify eligibility directly with each organisation.
Licences required in the United Kingdom
1. PPL (Phonographic Performance Limited)
PPL licences the public performance and broadcast of sound recordings. Internet radio stations broadcasting to UK listeners need a PPL licence.
Register at: ppluk.com
2. PRS for Music
PRS for Music licences the use of musical compositions (songwriting rights). Internet radio stations broadcasting to UK listeners need a PRS Online licence.
Register at: prsformusic.com
Licences required in Canada
1. Re:Sound
Re:Sound (formerly NRCC) administers performance royalties for sound recordings in Canada. Online radio services broadcasting to Canadian listeners require a Re:Sound licence.
Register at: re-sound.ca
2. SOCAN
SOCAN (Society of Composers, Authors and Music Publishers of Canada) licences the communication right in musical works (the composition). Internet radio stations need a SOCAN online music service licence.
Register at: socan.com
What if I play royalty-free or Creative Commons music?
Some music is licensed under Creative Commons or similar open licences that permit broadcasting without paying PRO royalties. This is a legitimate option for stations that want to avoid licensing costs.
Options include:
- Royalty-free music libraries: Epidemic Sound, Artlist, Musicbed — paid subscription, but covers your licensing for the music in their library
- Creative Commons music: Jamendo, Free Music Archive — free to use under the specified licence terms (check each track’s licence conditions)
- Your own original music: no licence required
What happens if you don't get the right licences?
Broadcasting commercial music without the correct licences is copyright infringement. Rights holders (record labels, publishers, and collection societies) do monitor internet radio stations and can:
- Issue a DMCA takedown notice
- Send a cease-and-desist letter
- Pursue damages in court
The financial penalties for wilful copyright infringement can be substantial. It is significantly cheaper to obtain the correct licences from the start.
Does my hosting provider handle licensing?
Hosting providers like Caster.fm provide the technical infrastructure for your stream — they do not handle music licensing on your behalf. Music licences are the station operator’s responsibility.
Some specialised services offer “licensed music” as part of their offering, but these typically provide a library of pre-licensed music for automated play — they do not licence you to stream any music you choose from streaming services like Spotify or Apple Music (which is not permitted for broadcast).
Summary: Licence checklist by country
United States
☐ SoundExchange (master recording rights)
☐ ASCAP (composition rights — blanket licence)
☐ BMI (composition rights — blanket licence)
☐ SESAC (if you play their catalogue)
United Kingdom
☐ PPL (master recording rights)
☐ PRS for Music (composition rights)
Canada
☐ Re:Sound (master recording rights)
☐ SOCAN (composition rights)
Start your internet radio station
The licensing requirements above apply when you play commercial music. Caster.fm’s hosting gives you a fully compliant streaming infrastructure — you bring the music and the content.
If you have questions about getting set up, our support team can help with the technical side of your stream. For licensing questions specific to your situation, consult a lawyer or contact the relevant collection societies directly.
For a full cost breakdown including licensing, see our cost guide. For gear recommendations, see our equipment guide.
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Frequently Asked Questions
Is it legal to make your own internet radio station?
Yes, starting an internet radio station is completely legal. You can broadcast talk shows, original content, or music you own the rights to without a licence. If you want to play commercial music, you need licences from collection societies: SoundExchange + ASCAP/BMI in the US, PPL + PRS in the UK, and Re:Sound + SOCAN in Canada.
Do I need a licence to run an internet radio station?
You need a licence only if you play commercially released music. If you broadcast talk shows, original music, or royalty-free audio, no music licence is required. For commercial music, you need both a master recording licence (SoundExchange in the US) and composition/publishing licences (ASCAP, BMI in the US).
How much does it cost to licence music for internet radio?
Music licensing costs for internet radio vary by station size. SoundExchange royalties are calculated per performance (approximately $0.0023 per song play per listener in the US as of 2024 CRB rates). ASCAP and BMI offer blanket licences with rates based on your revenue and audience size. Small stations may pay minimum annual fees of a few hundred dollars.
Do I need SoundExchange AND ASCAP/BMI?
Yes. SoundExchange covers the master recording (the artist’s performance), while ASCAP and BMI cover the underlying composition (the songwriter’s rights). These are separate rights, and you need licences from both to legally broadcast commercial music in the United States.
Can I play Spotify music on my internet radio station?
No. Spotify’s terms of service prohibit broadcasting Spotify streams to an audience. To play commercial music on an internet radio station, you need to obtain the audio files through legitimate means (purchased downloads, royalty-free music services, or direct artist licensing) and hold the appropriate performance licences.