Broadcast License Basics for Internet Radio: What Every New Broadcaster Should Know
Launching an online radio station is exciting — but before you hit “Go Live,” you need to understand the licensing rules that keep your station legal, ethical, and protected. Broadcast licensing can feel overwhelming at first, but once you understand the essentials, it becomes much easier to manage.
This guide breaks down the fundamentals of internet radio licensing, the types of licenses you may need, how to stay compliant, and the most common mistakes new broadcasters make.
What Is a Broadcast License?
Terrestrial Radio (AM/FM)
Traditional radio stations must obtain an FCC license to use a specific frequency on the public airwaves. The radio spectrum is limited, so the FCC regulates who can broadcast and where.
Internet Radio
Online stations do not need an FCC broadcast license because they don’t use the public spectrum. However, they do need content licenses to legally stream copyrighted music.
Without proper licensing, stations risk:
- Copyright infringement penalties
- Fines ranging from $750 to $150,000 per song
- DMCA violations
- Stream shutdowns
Why Internet Radio Stations Need Music Licensing
Every song you play is someone’s intellectual property. Licensing ensures that artists and songwriters are paid fairly and that your station operates legally.
Understanding the DMCA
The Digital Millennium Copyright Act (DMCA) governs how online radio stations can stream music. Key rules include:
- No more than 3 songs from the same album within 3 hours
- No more than 2 songs from the same album consecutively
- No more than 4 songs from the same artist within 3 hours
- You must display metadata (title, artist, album)
- You cannot pre-announce when a specific song will play
These rules prevent online stations from functioning like on-demand music services.
Types of Licenses Internet Radio Stations May Need
1. Performance Rights Organization (PRO) Licenses
PROs represent songwriters and composers. In the U.S., the major PROs are ASCAP, BMI, SESAC, and GMR. A PRO license covers the musical composition (lyrics + melody).
2. Sound Recording License (SoundExchange)
This license covers the actual recorded performance of a song and is required for most music-streaming stations.
3. Mechanical License
Required only if you allow downloads or on-demand playback. Streaming-only stations typically do not need this.
4. Synchronization (Sync) License
Needed only if you pair music with video (e.g., YouTube, promotional videos, live video streams).
How to Get Licensed: A Simple Step-by-Step Guide
Step 1: Identify What You Broadcast
Your content determines your licensing needs — music, talk, sports, religious content, podcasts, or downloads.
Step 2: Contact the Right Organizations
Depending on your station, you may need to reach out to:
- ASCAP, BMI, SESAC, GMR (PROs)
- SoundExchange
- Harry Fox Agency (mechanical licenses)
- Music publishers (sync licenses)
Step 3: Apply for Licenses
You’ll typically provide station name, expected listener hours, programming type, and operating hours.
Step 4: Set Up Reporting Systems
Most licensing bodies require track title, artist, album, timestamp, and frequency of plays.
Step 5: Renew and Monitor Licenses
Licenses must be renewed annually. Stay aware of law changes, reporting deadlines, and royalty adjustments.
Common Licensing Mistakes to Avoid
- Broadcasting without a license
- Ignoring DMCA rules
- Failing to submit accurate reports
- Letting licenses expire
The Easy Way: Using a Service That Handles Licensing for You
Services like Live365 offer a turnkey solution where PRO licensing, SoundExchange licensing, and reporting are included. This is ideal for broadcasters who want to focus on programming instead of paperwork.
Final Thoughts
Licensing is one of the most important — and most misunderstood — parts of running an online radio station. Whether you choose to license everything yourself or use a service that bundles it all together, the key is to start your station the right way: legally, ethically, and with respect for the creators whose work you share.