Internet Radio Licensing Guide 2026: SoundExchange, PROs & Real Costs

If you stream copyrighted music to the public you need two kinds of licence, not one. The first is a performance licence for the song, from ASCAP, BMI, SESAC and GMR in the US. The second is a digital performance licence for the recording, from SoundExchange in the US. SoundExchange's annual minimum is $1,000^[1] per station or channel, for commercial and noncommercial webcasters alike. The songwriter organisations set their own fees on top. In the UK the equivalent pair is PPL, from £207^[2] a year per channel for the smallest webcasters, and PRS for Music. If you play no copyrighted music — talk, sport, your own productions, royalty-free libraries — you need neither, and your licensing cost is $0. Those are the only three outcomes. The rest of this guide is how to tell which one you are in, country by country, and how to stay in it.

Launching an internet radio station is easier than ever. The streaming software is affordable, the audience is global, and you can broadcast from your bedroom. But there is one area where new broadcasters consistently trip up: licensing.

Playing copyrighted music on your internet station without the proper licences is infringement. It does not matter if your station is small, nonprofit, or run as a hobby. If you stream copyrighted music to the public, you need to pay for the right to do so. The good news is that the system, while layered, is navigable — even for solo operators on a tight budget.

This guide breaks down exactly what licences you need, what they cost, and how to stay compliant in 2026.

Why Licensing Matters

There are three practical reasons to take licensing seriously.

Legal compliance. Copyright holders have the legal right to control how their music is performed and distributed. In the US, the relevant right is 17 U.S.C. 106(6): sound recordings have a public-performance right only by digital audio transmission^[3], which is exactly what a stream is. Operating without licences exposes you to statutory damages of $750 to $30,000 per work^[4] infringed, rising to $150,000^[5] per work where the infringement is willful.

Supporting the artists you play. The royalties collected by licensing organisations flow back to songwriters, performers, and labels. If your station exists because you love music, paying for the music is a way to keep the ecosystem alive.

Avoiding shutdown. Rights holders can send a cease-and-desist letter, or a takedown notice to your hosting provider, and a host that acts on it can take your stream offline. Being small is no defence: the licence obligation does not depend on audience size.

Types of Licences You Need

This is where it gets layered. In most countries, multiple rights are embedded in a single song, and each right requires a separate licence.

1. Performance Rights (Songwriters and Publishers)

When you stream a song, you are publicly performing the underlying musical composition — the melody and lyrics written by the songwriter. In the United States, this right is managed by Performing Rights Organizations (PROs):

• ASCAP (American Society of Composers, Authors and Publishers)
• BMI (Broadcast Music, Inc.)
• SESAC
• GMR (Global Music Rights)

Each PRO represents a different catalogue of songwriters. Because you cannot predict which songs your DJs will play, most stations need licences from all the PROs whose writers they play. Each offers a blanket licence that covers its entire catalogue.

Cost: ASCAP and BMI both offer licences for internet services on their own websites, and SESAC and GMR license directly. We could not load ASCAP's or BMI's licensing pages to verify their current fees today, so this guide quotes none. Get each organisation's current rate card or quote before you budget.

2. Digital Performance Rights (Recording Artists and Labels)

This is the licence that catches many new broadcasters off guard. Beyond the composition, there is a separate copyright in the sound recording itself — the specific performance captured in the studio. When you digitally transmit that recording, you need a licence for it.

In the US, the statutory licence for non-interactive webcasting is administered by SoundExchange.

How it works: SoundExchange collects royalties for non-interactive digital transmissions (which includes internet radio). You report what you play, and the law splits the receipts: 50 percent^[6] to the copyright owner of the recording (usually the label), 45 percent^[7] to the featured artists, and 5 percent (2½ percent musicians + 2½ percent vocalists)^[8] for session musicians and vocalists.

Cost: SoundExchange publishes a rate card for each category of service:

A noncommercial station with a small audience may owe only the minimum. By our calculation, 159,140 aggregate tuning hours a month is an average of about 218 listeners around the clock (159,140 ÷ 730 hours in an average month). A commercial webcaster pays per performance from the first listener.

3. Mechanical Rights

Mechanical rights cover the reproduction of a musical composition. For a standard internet radio stream played live from a library, they are less of a direct concern than the two categories above. However, if you offer on-demand playback or downloads, mechanical licensing becomes essential.

In the US, the Copyright Act names the body that offers and administers the blanket mechanical licence for digital services: The Mechanical Licensing Collective (17 U.S.C. 115(d)(3))^[15], known as the MLC.

Licensing in the UK

If you are broadcasting from the United Kingdom, the structure is different but the principle is the same.

PRS for Music handles the performance rights for songwriters and publishers, and offers a licence for internet radio stations. Its page did not load in a form we could verify today, so check the current PRS tariff directly.

PPL (Phonographic Performance Limited) handles the rights for sound recordings and performers — similar to SoundExchange in the US. Its 2026 Linear Webcast Licence covers an internet radio station or a simulcast. It is priced in bands by the number of streams, where one track streamed to one listener counts as one. Band 1, up to 150,000 streams a year^[16], is £207 per channel per calendar year, excluding VAT.

The two are separate licences from separate organisations. PPL's own fee summary is explicit on this point: PRS for Music licence also required^[17].

Cost: A small UK internet radio station pays PPL's band fee plus the PRS for Music fee for its service. Both scale with audience size and revenue.

Licensing in the EU, Canada, and Australia

The two-layer principle — one licence for the composition, one for the recording — holds almost everywhere. What changes is who collects.

European Union. Each country has its own collecting societies, typically one for authors/composers and one for performers/producers. In Germany, GEMA covers compositions and GVL covers recordings. In France, SACEM handles compositions while SPRÉ/SCPP cover recordings. In the Netherlands, Buma/Stemra and Sena split the same roles. Webcasting tariffs are set by each society, so contact your national societies directly; links are at the end of this guide.

Canada. SOCAN licenses the performance right in compositions, and Re:Sound collects for sound recordings under tariffs set by the Copyright Board of Canada.

Australia. APRA AMCOS covers compositions and PPCA covers recordings, each with its own online radio licence.

The pattern to remember: wherever your station is legally based, expect to deal with two organisations, not one, and budget for both.

When Your Streaming Platform Covers Licensing (and When It Doesn't)

A handful of streaming platforms bundle music licensing into their subscription — Live365 is the best-known example, and it's a genuinely simpler path for US-focused stations. But read the coverage map carefully:

• Coverage is territorial. Live365's packages cover listeners in US, Canada, Mexico^[18]. Since May 2026^[19], UK coverage has been an optional add-on, from $17.99^[20] a month; UK listeners are geo-blocked without the add-on^[21].
• Coverage is platform-locked. Live365's licensing covers transmissions on Live365. Simulcast the same audio through your own Icecast server and that stream is yours to license.
• Most platforms cover nothing. If you stream via Icecast, Shoutcast, AzuraCast, or a hosting provider that does not bundle licensing, licensing is entirely your responsibility.

If you're weighing bundled-licensing platforms against self-licensing, our Live365 alternatives comparison breaks down the trade-offs.

A Simplified Approach for Small Internet Stations

If you are running a small internet radio station with minimal revenue, here is a practical checklist for the US:

1. Register with SoundExchange in the right category and pay the annual minimum ($1,000 per channel). File your reports of use as required.
2. Obtain ASCAP and BMI licences. Apply through their websites and get their current fees in writing.
3. Contact SESAC and GMR to determine whether you need their licences (it depends on what you play).
4. Keep detailed logs of every song you play, including artist, title, album, and label. They are needed for royalty reporting and protect you in disputes.
5. Review your obligations annually. Rates change. The Copyright Royalty Board sets SoundExchange's statutory rates periodically.

The floor for a small US internet radio station playing copyrighted music is the SoundExchange minimum plus whatever ASCAP, BMI, SESAC and GMR quote you. That is before your streaming costs, equipment, and website. For a full breakdown of all expenses, see our radio station website cost guide. For the whole station budget — start-up and monthly running costs side by side — see how much it costs to start and run a radio station.

Talk Radio and Original Content

Here is an important distinction: if your station does not play copyrighted music, you do not need music licences.

Talk, news, sports commentary, original spoken-word content, and stations that only play music created by the broadcaster are outside music licensing. If you produce a talk show, a podcast-style broadcast, or a niche format that uses only content you own or have explicit permission to use, you can operate without PRO or SoundExchange licences.

This is one reason talk radio and spoken-word formats have always been attractive for bootstrapped broadcasters.

Royalty-Free Music as an Alternative

If licensing costs are prohibitive, consider royalty-free music libraries. These are catalogues of music created specifically for use without ongoing royalty payments. You pay a one-time fee (or subscribe) and receive the right to use the music in your broadcasts.

Popular royalty-free and Creative Commons music sources include:

• Free Music Archive — curated Creative Commons music
• Epidemic Sound — subscription-based library (check their broadcast terms)
• Artlist — subscription model with broad licensing
• Incompetech — Kevin MacLeod's well-known royalty-free library
• ccMixter — community remix site with permissive licences

Important: Always read the specific licence terms. "Royalty-free" does not always mean "free." It means no per-use royalties, but there may be upfront costs and specific usage restrictions. Some licences exclude public broadcasting. Verify before you stream.

Mixing royalty-free tracks with a few properly licensed copyrighted songs can be a cost-effective strategy for smaller stations.

Common Myths Debunked

"My station is too small for anyone to notice." Whether anyone notices is not the test. The licence obligation and the statutory damages apply regardless of audience size.

"I'm nonprofit, so I don't need licences." Nonprofit status changes which rate card applies, but it does not exempt you from licensing. Even community radio stations must comply. SoundExchange's noncommercial webcaster minimum is the same $1,000 per channel as the commercial one. The difference is that it covers the first 159,140 aggregate tuning hours a month before any per-performance charge.

"I'm just playing music I bought on iTunes/Spotify." Purchasing a song for personal use does not grant you a public performance or broadcast licence. Those are separate rights.

"Playing only 30 seconds of a song is fair use." There is no "30-second rule" in copyright law. Any identifiable portion of a copyrighted work can constitute infringement.

"My streaming provider handles licensing." Some streaming platforms (like Spotify or Apple Music) pay licences for their own service, but that does not cover your independent internet radio station. If you are using Icecast, Shoutcast, or any self-hosted streaming setup, licensing is entirely your responsibility.

"I only play independent artists who want the exposure." Even if an indie artist verbally agrees, they may be registered with a PRO. And verbal agreements are hard to enforce. Get written permission, or license properly.

Staying Organized

Licensing compliance is an ongoing responsibility, not a one-time task. A few habits that keep stations out of trouble:

• Automate playlist logging. Most broadcast software (RadioDJ, PlayIt Live, Mixxx) can export playlists. Use this data for your SoundExchange reports.
• Set calendar reminders for annual licence renewals and royalty filings.
• Keep receipts and correspondence from every PRO and licensing body.
• Review the Copyright Royalty Board website periodically for rate changes.

Check Every Figure Here At Source

Royalty rates are set by regulators and collecting societies, they are revised on their own schedule, and no guide — including this one — is a substitute for the current rate card. Every cited figure in this guide links to its source in the numbered list at the end. Each organisation publishes its own:

• US sound-recording royalties for webcasters — SoundExchange, which publishes the statutory rates and the annual minimum fee per channel, and the Copyright Royalty Board, which sets them. The underlying law is the Copyright Act on the US Copyright Office site.
• US songwriter and publisher licences — ASCAP, BMI, SESAC and GMR.
• UK — PPL for the recording and PRS for Music for the composition.
• Germany — GEMA for authors and GVL for performers and producers. Netherlands — Buma/Stemra and Sena. France — Sacem and SCPP. Spain — SGAE and AGEDI. Italy — SIAE and SCF.
• Canada and Australia — SOCAN and Re:Sound; APRA AMCOS and PPCA.
• What this adds to the rest of your budget — what a radio station costs to start, run and own, where licensing is the single biggest line for a music station.

Cited figures checked at source on 5 November 2026. Nothing here is legal advice: if your station carries commercial risk, pay a music lawyer in your own country for an hour of their time.

The Easier Way: RadioSiteMaker

Licensing is your responsibility as a broadcaster — no website platform can handle that for you. But everything else about your station's online presence? That is where RadioSiteMaker comes in.

While you sort out your ASCAP, BMI, and SoundExchange obligations, RadioSiteMaker gives your station a professional website in minutes. For $99 per year, you get a live stream player, show schedule, DJ profiles, podcasts, blog, events, charts, dedications, donations, and more. No WordPress to maintain. No plugins to update. No developer to hire.

You handle the music rights. We handle the website. Start your free trial at RadioSiteMaker.com

Frequently Asked Questions

Do I need a license to stream music on the internet?

Yes. If you stream copyrighted music to the public — regardless of audience size, whether you charge listeners, or whether your station is commercial or nonprofit — you need performance rights licences (from PROs like ASCAP and BMI) and a digital performance licence (from SoundExchange in the US). The only exception is if you exclusively stream content you own or have explicit written permission to use.

How much does it cost to legally stream music online?

For a US internet radio station, SoundExchange's annual minimum is $1,000 per station or channel, whether you are commercial or noncommercial. On top of that come the ASCAP, BMI, SESAC and GMR licences, which each organisation prices itself, so get current quotes. In the UK, PPL's 2026 webcast licence starts at £207 a year per channel (ex. VAT) for up to 150,000 streams a year, and you need a PRS for Music licence as well.

Can I avoid music licensing by using royalty-free music?

Yes, if you exclusively use royalty-free or Creative Commons music with appropriate broadcast licences, you do not need PRO or SoundExchange licences. However, always verify the specific terms of each royalty-free licence — some exclude public broadcasting or internet radio. Many stations use a mix of royalty-free and licensed copyrighted music to manage costs.

What happens if I stream music without a license?

You risk cease-and-desist letters and takedown notices that can take your stream offline, and in the US statutory damages of $750 to $30,000 per work infringed, up to $150,000 per work for willful infringement. Your streaming host or platform may also terminate your account.

Does my streaming platform's license cover my station?

Only if the platform explicitly bundles licensing — Live365 is the main example — and only for listeners in the territories the platform covers. For Live365 in 2026 that means US, Canada, Mexico, with the UK as a paid add-on. The licence also only applies to streams delivered through that platform. Icecast, Shoutcast, and most stream hosting providers cover nothing: licensing is your responsibility.

Do I need separate licenses for each country I broadcast to?

Licensing is generally based on where your station operates, not where your listeners are. A US-based station pays US licensing fees. However, if you establish a legal presence in another country or specifically target a foreign market, the licensing requirements of that country may also apply. Consult a music licensing attorney if you have a complex international setup.