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.
Do You Actually Need a Music Licence?
Not everyone does. Here’s the quick test:
- Talk radio only? No music licence required. Original speech, interviews, and commentary don’t trigger music licensing obligations.
- Playing your own original music? No licence required — as long as you own 100% of both the composition and the master recording.
- Playing commercial music (any track you didn’t write and record yourself)? Yes, you need licences. Keep reading.
If you fall into the third category, this guide walks you through exactly what you need, step by step.
How Internet Radio Licensing Works (vs. Streaming Services)
Internet radio — where you control the playlist and listeners tune in — operates under a different legal framework than on-demand streaming services like Spotify. This distinction matters:
- Webcasting / internet radio: You control the playlist; listeners cannot choose specific tracks. Governed by “statutory licence” provisions in the US and equivalent collective licensing 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 — the model used by community stations, independent broadcasters, and anyone running a traditional-style radio station online.
How to Get Licensed: A Step-by-Step Guide
Step 1: Identify Your Content
Before contacting any licensing body, know what you’re broadcasting:
- 100% original content (talk, your own music)? You’re done — no music licence required. Skip to “Start Your Internet Radio Station.”
- Playing commercial music? Continue to Step 2.
Step 2: Determine Your Country (and Your Audience)
Music licensing is territorial. The licences you need depend on:
- Where your station is based (your country of broadcast)
- Where your listeners are (some licences cover international audiences; others don’t)
Quick reference:
- United States: SoundExchange (master recording) + ASCAP, BMI, SESAC, GMR (composition/publishing)
- United Kingdom: PPL (master recording) + PRS for Music (composition/publishing)
- Canada: Re:Sound (master recording) + SOCAN (composition/publishing)
If you’re broadcasting from a country not listed here, check with your local performance rights organisation (PRO) and sound recording collection society. Most countries have equivalents — for example, Hungary has ARTISJUS and MAHASZ; Australia has APRA AMCOS and PPCA.
Step 3: Choose Your Path — DIY Licensing vs. Licensed Platform
There are two ways to handle music licensing for your internet radio station:
Path A: Do It Yourself (DIY Licensing)
You contact the PROs and collection societies directly, obtain your own licences, and manage your own royalty reporting. This path gives you full control and is the most cost-effective if you run a small station.
Pros:
- Lower total cost for small stations (minimum annual fees from PROs)
- Full control over your licensing arrangements
- Not tied to any specific hosting platform
Cons:
- You manage the paperwork and reporting yourself
- Multiple organisations to deal with (at least 3 in the US)
- You’re responsible for staying current with rate changes
Path B: Licensed Platform
Some hosting platforms bundle music licensing into their packages. Live365, for example, includes ASCAP, BMI, SESAC, GMR, and SoundExchange coverage in their plans for US, Canada, and Mexico. The platform handles royalty reporting on your behalf.
Pros:
- No paperwork — the platform handles reporting
- One bill, one relationship
- Guaranteed compliance for covered territories
Cons:
- Higher monthly cost (platform premium on top of hosting)
- Coverage is platform-specific — if you leave the platform, your licensing coverage ends
- May not cover all territories or all PRO catalogues
Caster.fm’s position: We provide the streaming infrastructure — Icecast-powered servers, radio website CMS, and the technical tools to run your station. We do not bundle music licensing. This is by design — it’s the trade-off that lets us offer a permanent free tier (400 listener slots, no credit card) and lower per-stream costs than licensed platforms. You handle your own licensing; we make sure your stream stays on the air with enterprise-grade infrastructure, running since 2010.
Step 4: Apply for Your Licences
Once you’ve chosen your path, here’s how to apply if you’re going the DIY route:
United States:
- SoundExchange — Register at soundexchange.com. You’ll need your station name, contact info, and expected audience size. SoundExchange will determine your rate tier (commercial webcaster, small webcaster under 5,000 aggregate tuning hours/month, or non-commercial). The 2026 rate is approximately $0.0028 per performance — see the full calculation below.
- ASCAP — Apply at ascap.com/licensing. Blanket licence rates are based on your station’s revenue. Small webcasters typically pay a minimum annual fee — contact ASCAP for a quote.
- BMI — Apply at bmi.com/licensing. Similar structure to ASCAP; most stations need both.
- SESAC — sesac.com — smaller catalogue; check if artists you play are SESAC-affiliated.
- GMR — globalmusicrights.com — covers a growing catalogue of major songwriters.
United Kingdom:
- PPL — Register at ppluk.com. PPL licences the public performance and broadcast of sound recordings. Rates vary by station size and revenue.
- PRS for Music — Register at prsformusic.com. PRS licences musical compositions (songwriting rights). You need a PRS Online licence for internet radio.
Canada:
- Re:Sound — Register at re-sound.ca. Administers performance royalties for sound recordings. Online radio services need a Re:Sound licence.
- SOCAN — Register at socan.com. Licences the communication right in musical works. You need a SOCAN online music service licence.
The Three Types of Music Licences Explained
If you’re new to this, the terminology can be confusing. Here’s what each type of licence actually covers:
1. Performance Rights (Composition/Publishing)
These cover the song itself — the melody, lyrics, and musical arrangement. Think of this as the songwriter’s and publisher’s share. In the US, performance rights organisations (PROs) include:
- ASCAP — largest US PRO, covers millions of works
- BMI — second-largest, similar catalogue size
- SESAC — smaller, invitation-only for songwriters
- GMR — newer entrant, covers major contemporary songwriters
Most stations need blanket licences from at least ASCAP and BMI to cover the vast majority of commercial music.
2. Digital Performance Royalties (Master Recording)
This covers the specific recording — the artist’s actual performance captured on a record. In the US, this is handled by SoundExchange. In the UK, it’s PPL. In Canada, it’s Re:Sound.
These are separate from composition rights. A single song playing on your station generates two royalty obligations: one to the songwriters (via ASCAP/BMI) and one to the performers and label (via SoundExchange).
Do I need both? Yes. When you play “Bohemian Rhapsody” by Queen on your station, Freddie Mercury’s estate and the song publishers get composition royalties (ASCAP/BMI), while Queen’s record label and the performing musicians get master recording royalties (SoundExchange). These are separate rights held by separate parties.
3. Blanket Licences
A blanket licence is the practical answer for most internet radio stations. Rather than licensing each song individually — which would be impossible for a station with a playlist of thousands of tracks — a blanket licence from each PRO and SoundExchange lets you play any song in their catalogue under a single annual (or periodic) fee.
Think of it as an “all-you-can-play” arrangement. You pay one fee to ASCAP, one to BMI, and your per-performance royalties to SoundExchange, and you’re covered for millions of songs.
Blanket licences are not free, but they are far cheaper than the alternative of licensing individual tracks. Most small webcasters pay minimum annual fees in the low hundreds of dollars per PRO, plus SoundExchange per-performance royalties.
United States — Full Licensing Breakdown
Internet radio stations in the US need two categories 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 — always verify current rates at soundexchange.com before relying on this guide.
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 $0.0028/performance: approximately $33.60/day, $1,008/month
2. Composition (publishing) rights — PROs
Composition rights cover the songwriting (melody + lyrics) separately from the recording. You need licences from:
- ASCAP — ascap.com
- BMI — bmi.com
- SESAC — sesac.com (smaller catalogue; check if needed)
- GMR — globalmusicrights.com (growing catalogue of major songwriters)
Most stations need blanket licences from both ASCAP and BMI at minimum. Rates are based on audience size and revenue. Small webcasters may pay minimum annual fees in the range of a few hundred dollars per organisation. Contact each PRO directly for a rate quote — they will ask about your station’s revenue, audience size, and format.
Non-commercial and educational stations (US)
Non-commercial and educational (NCE) internet radio stations may qualify for reduced rates from SoundExchange, ASCAP, and BMI. Eligibility criteria vary by organisation — verify directly with each one.
United Kingdom — Full Licensing Breakdown
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.
Rates are based on your station’s revenue and audience size. Small stations typically pay lower fees — contact PPL for a quote specific to your station.
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.
Like PPL, rates scale with your station’s size and revenue. Small online-only stations may pay annual fees in the range of £100–£500, but verify current rates at prsformusic.com.
Register at: prsformusic.com
Canada — Full Licensing Breakdown
1. Re:Sound
Re:Sound administers performance royalties for sound recordings in Canada. Online radio services broadcasting to Canadian listeners require a Re:Sound licence.
Rates are tariff-based and vary by station type and revenue. Small webcasters may qualify for lower tariff rates.
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.
Like Re:Sound, SOCAN rates are tariff-based. Small stations may pay annual minimum fees — contact SOCAN for a quote.
Register at: socan.com
SOCAN and Re:Sound offer a joint licensing portal for online music services — check both organisations’ websites for current application options.
Common Beginner Mistakes to Avoid
Many new broadcasters make the same licensing mistakes. Here are the most common — and how to avoid them:
1. Playing from Spotify or Apple Music on your station.
This is a violation of their terms of service. Spotify and Apple Music grant personal listening rights, not broadcast rights. Even if you pay for a Premium subscription, you cannot legally stream that audio to an audience. You need to own the audio files (purchased downloads, CDs you’ve ripped, etc.) and hold the appropriate performance licences.
2. Assuming “fair use” covers playing full songs.
“Fair use” is a limited legal doctrine that almost never applies to playing full commercial songs on a radio station. Do not rely on fair use as your licensing strategy — it will not protect you.
3. Thinking non-commercial = no licence needed.
Even if your station doesn’t make money, broadcasting copyrighted music is still a public performance that requires licences. Non-commercial stations may qualify for reduced rates, but the licensing obligation still exists.
4. Ignoring DMCA sound recording performance complement rules.
In the US, the Digital Millennium Copyright Act limits how you can programme music. Key rules include: no more than 3 songs from the same album in a 3-hour period (with no more than 2 played consecutively), and no more than 4 songs by the same artist (or from a compilation album) in a 3-hour period. Breaking these rules can jeopardise your statutory licence.
5. Confusing “owning” a song with “having broadcast rights.”
Buying an MP3 or a CD gives you personal listening rights. It does not give you the right to broadcast that recording to an audience. Broadcast rights are separate and must be obtained through the licensing organisations described in this guide.
6. Forgetting that downloads and podcasts need separate licences.
If your station offers downloadable show archives or podcast versions of your broadcasts, you may need mechanical licences in addition to performance licences. The rules for on-demand/downloadable content are different from live streaming.
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 services that cover your licensing for the music in their library. You pay a fixed subscription rather than per-play royalties.
- Creative Commons music: Jamendo, Free Music Archive — free to use under the specified licence terms. Always check each track’s individual licence conditions — some CC licences prohibit commercial use or require attribution.
- Your own original music: No licence required, as long as you control 100% of both the composition and the recording.
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 — actively monitor internet radio stations and can:
- Issue a DMCA takedown notice to your hosting provider
- Send a cease-and-desist letter demanding you stop broadcasting
- Pursue statutory damages in court, which can reach up to $150,000 per work for wilful infringement in the US
The financial penalties for wilful copyright infringement are substantial. It is significantly cheaper to obtain the correct licences from the start than to face legal action later.
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) — soundexchange.com
☐ ASCAP (composition rights — blanket licence) — ascap.com
☐ BMI (composition rights — blanket licence) — bmi.com
☐ SESAC (if you play their catalogue) — sesac.com
☐ GMR (if you play their catalogue) — globalmusicrights.com
United Kingdom
☐ PPL (master recording rights) — ppluk.com
☐ PRS for Music (composition rights) — prsformusic.com
Canada
☐ Re:Sound (master recording rights) — re-sound.ca
☐ SOCAN (composition rights) — socan.com
Start your internet radio station
The licensing requirements above apply when you play commercial music. Caster.fm’s hosting gives you the streaming infrastructure — Icecast-powered servers, your own radio website, and the technical tools to reach listeners worldwide.
We’ve been helping broadcasters get on the air since 2010 on our enterprise infrastructure. Our permanent free tier gives you 400 listener slots with no credit card required — and it stays free.
Start your free internet radio station →
For a full breakdown of all the costs involved (hosting, licensing, equipment), see our cost guide. For gear recommendations, see our equipment guide.
If you have questions about the technical side of your stream, our support team is here to help. For licensing questions specific to your situation, consult a lawyer or contact the relevant collection societies directly.
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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 do I apply for an internet radio licence?
Contact the relevant organisations directly: SoundExchange (soundexchange.com) for master recording rights, and ASCAP (ascap.com) and BMI (bmi.com) for composition rights in the US. Each organisation has an online application. You’ll need your station name, contact information, and details about your audience size and revenue. Most stations qualify for blanket licences that cover entire catalogues under a single fee.
What is a blanket licence and do I need one?
A blanket licence lets you play any song in a PRO’s entire catalogue under a single annual fee, rather than licensing each song individually. Most internet radio stations need blanket licences from their country’s PROs. In the US, this typically means a blanket licence from ASCAP and another from BMI, plus SoundExchange registration. Blanket licences are the practical choice — licensing individual tracks would be impossible for a station with a playlist of thousands of songs.
How much does it cost to licence music for internet radio?
Music licensing costs vary by station size. In the US, SoundExchange royalties are calculated per performance (approximately $0.0028 per song play per listener in 2026). ASCAP and BMI blanket licence fees are based on your station’s revenue and audience size — small webcasters may pay minimum annual fees of a few hundred dollars per organisation. In the UK, small stations may pay £100–£500 annually to PPL and PRS. Contact each organisation for a quote specific to your station.
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 held by separate parties, 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, ripped CDs) and hold the appropriate performance licences. Streaming-service subscriptions are for personal listening only.
Can I use royalty-free music instead of getting a licence?
Yes. Royalty-free music services like Epidemic Sound or Artlist, and Creative Commons libraries like Free Music Archive, let you play music without PRO licences — as long as you comply with each track’s specific licence terms. This is a legitimate way to avoid licensing costs, though your music selection will be more limited than with a full blanket licence covering commercial music.