This is the conversation most broadcasters have with themselves for too long before getting a clear answer.
Do I actually need a music licence to run my internet radio station? What happens if I just play music without one? Which organisations do I need to pay? How much does it actually cost? And why does every guide on this topic either oversimplify it into “just get a licence” or bury the answer in legal language that requires a solicitor to decode?
Music licensing is the single most misunderstood legal obligation in internet radio. It stops more stations from launching than any technical challenge. It causes more ongoing anxiety for existing broadcasters than any hosting or equipment decision. And it is genuinely more straightforward than its reputation suggests once you understand the actual structure of how music rights work and which specific obligations apply to your specific situation.
This guide gives you the complete picture. The legal framework, the specific organisations, the actual costs, the royalty-free alternatives, and the geo-blocking connection that ties your licensing compliance directly to your hosting setup.
Why Music Licensing Exists and What It Is Actually Protecting
When a songwriter writes a song and a recording artist records it, two separate sets of rights are created. The composition rights cover the underlying melody and lyrics written by the songwriter or composer. The sound recording rights, also called master rights or neighbouring rights, cover the specific recorded performance of that composition.
When you play a track on your internet radio station, you are using both sets of rights simultaneously. You are broadcasting the songwriter’s composition and you are broadcasting the specific recording made by the artist or their record label. Both rights holders are legally entitled to compensation for that use.
Performing rights organisations (PROs) exist to collect and distribute that compensation at scale. Rather than every radio station negotiating individual licences with every songwriter and every record label separately, which would be logistically impossible given the scale of music broadcasting, PROs collect blanket licence fees from broadcasters and distribute the collected royalties to their member songwriters and publishers.
The blanket licence is what makes music licensing practically workable for radio stations. You pay one annual or monthly fee to the relevant PRO for your territory and in return you receive the right to play any track in their catalogue without seeking individual permission for each one. For a music station that plays hundreds of tracks per week, the blanket licence is the only commercially viable approach to legal music use.
The United States: ASCAP, BMI, SESAC, and SoundExchange
The United States has the most complex music licensing landscape for internet radio broadcasters because multiple organisations cover different rights and different repertoires simultaneously.
ASCAP (American Society of Composers, Authors and Publishers)
ASCAP is one of the two largest performing rights organisations in the United States and represents over one million songwriters, composers, and music publishers. An ASCAP licence covers the public performance of compositions in their catalogue, which includes most commercially released music from American artists and a significant proportion of international repertoire.
Internet radio rates through ASCAP are calculated based on your station’s revenue or a minimum flat fee, whichever is higher. For non-commercial and small revenue stations, ASCAP’s minimum rates start at approximately $284 per year as of 2026, though rates are subject to periodic revision. Commercial stations pay a percentage of gross revenue from broadcasting activities.
ASCAP licences are available directly through their website at ascap.com. The application process involves describing your station’s format, expected listener numbers, and revenue status.
BMI (Broadcast Music Inc)
BMI is the other major US performing rights organisation, representing over one million songwriters and composers with a catalogue that complements rather than duplicates ASCAP’s. Many major artists have their compositions split between ASCAP and BMI representation depending on their publisher relationships. A fully compliant US internet radio station typically needs licences from both ASCAP and BMI to cover the full range of commercially released music.
BMI’s internet radio licence rates follow a similar structure to ASCAP, with minimum fees for non-commercial stations and percentage-of-revenue calculations for commercial operations. BMI licence applications are available at bmi.com.
SESAC
SESAC is a smaller but significant PRO whose catalogue includes major artists and songwriters not represented by ASCAP or BMI. Unlike ASCAP and BMI which operate open membership, SESAC is selective in the songwriters it represents. Their catalogue includes Bob Dylan, Neil Diamond, and significant portions of the Christian and gospel music repertoire, making a SESAC licence particularly relevant for gospel and Christian music stations.
SESAC does not publish standard rate cards publicly. Licensing negotiations happen directly through SESAC’s licensing team. Contact them through sesac.com to discuss rates applicable to your station’s format and scale.
SoundExchange
SoundExchange is categorically different from ASCAP, BMI, and SESAC and this distinction confuses many broadcasters. While ASCAP, BMI, and SESAC collect royalties for composition rights on behalf of songwriters and publishers, SoundExchange collects digital performance royalties for sound recording rights on behalf of recording artists and record labels.
For internet radio specifically, SoundExchange administers the statutory licence under the Digital Millennium Copyright Act (DMCA) that covers non-interactive internet radio broadcasting in the United States. This statutory licence allows qualifying internet radio stations to stream music without negotiating individually with each record label, in exchange for paying the statutory royalty rates set by the Copyright Royalty Board.
A US internet radio station that wants to play commercially released music legally needs both a performance rights licence from ASCAP and BMI for the composition rights AND a digital performance royalty arrangement with SoundExchange for the sound recording rights. These are two separate obligations covering two separate sets of rights in the same track.
SoundExchange royalty rates for internet radio are set periodically by the Copyright Royalty Board and are expressed as a per-performance rate, meaning a rate per listener per track played. The rate as of recent CRB determinations is approximately $0.0026 per performance for webcasting. For a station with 100 listeners playing 15 tracks per hour, this translates to approximately $0.39 per hour of broadcasting in SoundExchange royalties.
Live365: The Simplified All-In-One Licensing Solution for US Stations
For US internet radio stations that want to avoid the complexity of managing separate ASCAP, BMI, SESAC, and SoundExchange relationships, Live365 offers a broadcaster subscription service that bundles all required US music licences into a single monthly fee. Live365 handles the PRO relationships and SoundExchange reporting on behalf of their subscriber stations.
Live365’s model simplifies compliance significantly at the cost of a higher total fee than managing the licences individually at very small scale. For stations in the early growth phase where administrative simplicity is worth a premium, Live365 is worth evaluating alongside the direct licensing approach.
The United Kingdom: PPL PRS
UK internet radio stations play under a combined licence from PPL PRS, which represents a merger of the two separate organisations that previously handled different aspects of music rights.
PPL (Phonographic Performance Limited) handles the sound recording rights, equivalent to SoundExchange’s role in the US. PRS for Music handles the composition rights, covering the songwriter and publisher side equivalent to ASCAP and BMI combined.
The PPL PRS combined licence for internet radio, called the Limited Online Music Licence (LOML) for smaller stations, covers both rights under one agreement and one payment. This administrative simplicity is a genuine advantage of the UK system compared to the multi-organisation complexity of the US landscape.
PPL PRS rates for online radio are calculated based on your station’s revenue and listener numbers. Non-commercial stations with limited revenue qualify for the lowest rate tiers. Commercial stations with significant listener counts pay higher rates scaled to their revenue and reach.
Apply for the PPL PRS online radio licence at pplprs.co.uk. UK broadcasters should also be aware that their licence covers broadcasting to UK listeners specifically, which is why geo blocked radio streaming to restrict your stream to UK IP addresses is the technical implementation of your PPL PRS licence compliance.
Other Major Territories
Canada: SOCAN (Society of Composers, Authors and Music Publishers of Canada) handles composition rights. Re:Sound handles neighbouring rights for sound recordings. Both are required for Canadian internet radio stations playing commercially released music.
Australia: APRA AMCOS handles composition rights for Australian and international repertoire. PPCA (Phonographic Performance Company of Australia) handles sound recording rights. Both are required for Australian internet radio operations.
Ireland: IMRO (Irish Music Rights Organisation) handles composition rights. PPI (Phonographic Performance Ireland) handles sound recording rights.
European Union: The EU has been moving toward a more unified licensing framework under the Digital Single Market Directive, but in practice most EU member states still have their own national PROs. A German station would work with GEMA. A French station with SACEM. A Spanish station with SGAE. Broadcasters targeting specific EU markets should identify the relevant national PRO for their primary listener territory.
The Royalty-Free Alternative: How to Broadcast Legally Without PRO Licences
Royalty-free music is music where the rights holder has granted blanket permission for use in broadcasting contexts without per-use royalty payments. This is not the same as free music. Royalty-free music typically requires a one-time licence purchase or a subscription to a library, after which you can use the music in your broadcasts without ongoing royalty obligations.
Creative Commons licensed music is music where the artist has chosen to release their work under a Creative Commons licence that permits certain uses including broadcasting, subject to conditions that vary by licence type. Creative Commons music is genuinely free to use under the terms of the specific licence applied, which may require attribution, prohibit commercial use, or prohibit derivative works depending on the licence variant chosen by the artist.
Sources for royalty-free and Creative Commons music that broadcasters use for legal broadcasting without PRO licences include Jamendo, Free Music Archive, ccMixter, Incompetech, and Musopen. These libraries vary significantly in genre coverage and production quality, but have expanded substantially in recent years and now cover many mainstream genres with professionally produced content.
A station built entirely on royalty-free and Creative Commons music avoids all PRO licensing obligations entirely. Many community stations, new broadcasters establishing their format before committing to licensing costs, and niche genre stations serving communities underrepresented in commercial music catalogues operate entirely within royalty-free frameworks.
How Geo Blocking Connects to Your Music Licence
Every PRO licence is territorial. Your PPL PRS licence covers UK listeners. Your ASCAP and BMI licences cover US listeners. Your SOCAN licence covers Canadian listeners.
If your stream is accessible globally without geographic restriction and you hold only a US music licence, you are technically broadcasting unlicensed content to listeners in every country outside the United States. The legal exposure from this situation varies by jurisdiction but is a genuine compliance risk for commercially operating stations.
The technical solution is geo blocked radio streaming that restricts your stream to the geographic territories covered by your licences. A US-licensed station that geo locks to United States IP addresses only is broadcasting exclusively to the territory its licence covers. A UK-licensed station that geo locks to UK IP addresses only is doing the same.
This is why geo blocking is not just a security feature but a compliance feature that directly supports your licensing arrangements. TTT Radio Network’s geo blocking settings allow you to specify exactly which countries can access your stream, implementing your licence territory restrictions technically rather than relying on listener geography by chance.
What Happens to Stations Broadcasting Without Licences
The consequences of broadcasting copyrighted music without appropriate licences range from takedown notices to legal proceedings depending on the scale of the breach and the jurisdiction.
In the United States, the DMCA provides both a framework for lawful internet radio broadcasting and significant penalties for unlawful use of copyrighted sound recordings. Statutory damages for copyright infringement can reach $150,000 per work for wilful infringement, though in practice PROs and rights holders typically pursue cease and desist notices and retroactive licensing agreements before pursuing statutory damages against small independent broadcasters.
In the UK, PPL PRS actively monitors internet radio stations for unlicensed use of their catalogue and has pursued legal action against commercial operators broadcasting without licences.
The practical approach for any broadcaster who has been operating without licences is to contact the relevant PROs proactively, disclose your broadcasting activity, and negotiate a licensing arrangement. PROs are generally more interested in bringing broadcasters into a licensing relationship than in pursuing legal action against good-faith operators who were unaware of their obligations.
Reporting Requirements: What Your Licence Obligates You to Do
Most PRO licences include a reporting requirement that obligates you to submit logs of the music you broadcast. These logs are used by the PRO to distribute collected royalties to the appropriate songwriters and artists.
In the US, SoundExchange requires monthly reporting of your total performances by track, a count of how many times each specific track was played multiplied by your concurrent listener count at the time of each play. This reporting is typically generated automatically by broadcasting software that maintains a log of every track played with timestamps and listener count data.
ASCAP and BMI have their own reporting requirements for licensed stations, typically quarterly or annual reports of your most played tracks or a statistical sample of your playlist.
Automate your reporting as early as possible using your broadcasting software’s logging functionality. SAM Broadcaster, RadioBOSS, and most professional broadcasting platforms maintain detailed play logs that can be exported in formats compatible with PRO reporting requirements. Manual logging of every track played across a 24-hour automated station is not practically sustainable.
Station automation through TTT Radio Network’s AutoDJ maintains comprehensive logs of every track played in your automated programming rotation, giving you the play data you need for PRO reporting without any manual record-keeping.
Frequently Asked Questions About Music Licensing for Internet Radio
Do I need a music licence if my station is free to listen to and non-commercial
Yes, in most territories. The obligation to licence music use is based on the act of broadcasting the copyrighted work, not on whether you are generating commercial revenue from the broadcast. Non-commercial status may qualify you for reduced licence rates with some PROs but does not eliminate the licensing requirement. The one exception is royalty-free and Creative Commons licensed music, which can be broadcast without PRO licences under their specific terms regardless of your commercial status.
Can I play music on my internet radio station if I already bought the songs on iTunes or Spotify
No. Purchasing a copy of a song for personal listening gives you a licence for personal use only. Broadcasting that song to an audience of listeners is a public performance that requires a separate broadcasting licence regardless of how you obtained your copy of the track. This is one of the most common misconceptions among new broadcasters and one of the most important to correct before launching.
How much does music licensing actually cost for a small internet radio station
For a small non-commercial US station, the combined minimum fees for ASCAP and BMI start at approximately $500 to $600 per year before SoundExchange royalties. SoundExchange costs are variable based on your actual listener count and tracks played. A small station with an average of 50 concurrent listeners might pay $200 to $800 per year in SoundExchange royalties depending on programming. UK stations with the PPL PRS LOML can access combined licensing at rates starting under £500 per year for smaller operations.
What is the difference between a music licence and a broadcast licence
A broadcast licence from a regulatory body like the FCC in the US or Ofcom in the UK is required for broadcasting on public radio frequencies and is not required for internet radio broadcasting. Internet radio does not use licensed public airwave spectrum and therefore does not require a broadcast frequency licence. A music licence from a PRO is what covers your right to play copyrighted music in your internet broadcast and is required regardless of your broadcast medium.
Can I use music from YouTube on my internet radio station
No. Music on YouTube is licensed for streaming through YouTube’s own platform under YouTube’s agreements with rights holders. That licence does not extend to you re-broadcasting the audio through your own radio station. Using YouTube as a music source for your radio broadcast creates the same licensing obligations as any other use of that music in a broadcast context.
The Stations That Get Licensing Right From the Start Grow Without Legal Anxiety
The broadcasters who spend the most mental energy on music licensing are the ones who have been broadcasting without licences and are quietly worrying about it. The broadcasters who sorted their licensing in their first month of operation think about it approximately once a year when their renewal comes up.
Getting licensed from the start costs money. The amounts involved are real and for some early stage stations represent a significant portion of their total operating budget. But the alternative, broadcasting without licences and accumulating the legal exposure that comes with it, is not a sustainable foundation for a station you intend to grow and potentially commercialise.
Start with royalty-free music if the licensing costs are prohibitive at launch. Build your audience on a legally clear foundation. Add PRO licences as your station’s revenue and audience growth justify the investment. Use geo blocked radio streaming to restrict your broadcast to the territories your licence covers. Log your playlist consistently to meet reporting requirements.
That sequence keeps your station legally compliant at every stage of its growth without front-loading costs that a new station may not be able to sustain.
Visit tttradionetwork.com to explore hosting plans that include the geo blocking, automation, and recording features that support your licensing compliance, or contact the team at info@tttradionetwork.com and 860-704-9848.
Your music licence is only meaningful when your technical setup enforces it. Make sure yours does.