Creating an online radio station in the United States looks exciting, but you quickly face bureaucracy. Everything follows clear rules, though some steps feel unnecessary. There are several organizations, and each one handles its own part of music rights. If you skip even one, you eventually get messages asking you to fix everything.
What Licenses You Need
Online radio stations that use music must obtain two categories of rights:
- Rights to the sound recording — handled by SoundExchange
- Rights to public performance of the musical composition — covered by ASCAP, BMI, and SESAC
Without these licenses, broadcasting is considered illegal, even for small stations.
Price and Link Table
| Organization | What It Covers | Link | Approximate Fees |
|---|---|---|---|
| SoundExchange | Sound recording rights | https://www.soundexchange.com/service-provider/commercial-webcaster/ | Commercial: $1,000/year per channel + $0.0021–0.0026 per performance. Non-commercial: $500/year. |
| ASCAP | Composer and publisher rights | https://www.ascap.com/music-users/types/radio | Smaller stations from around $390/year. Cost varies. |
| BMI | Composer and publisher rights | https://www.bmi.com/licensing/entry/radio | Small stations approx. $250–$400/year. Larger stations $1,000 and above. |
| SESAC | Composer and publisher rights | https://www.sesac.com/music-licensing-fees-how-are-they-determined/ | Individual pricing. Rough estimate: ~0.2824% of net revenue. |
Step-by-Step Guide
Step 1: Determine Whether You Use Music
If your station runs only original content, talk shows, or fully owned music, licenses may not be required. But you must be certain that no outside music is included.
Step 2: Register with SoundExchange
All stations using recorded music must register. This includes:
- Creating an account
- Submitting station details
- Selecting commercial or non-commercial category
- Setting up track reporting
SoundExchange may request additional information, so accuracy helps avoid paperwork returns.
Step 3: Apply to ASCAP, BMI, and SESAC
Applications can be submitted in parallel. Each organization requires:
- Online form submission
- Details about broadcasting format, schedule, and audience size
- Revenue information (for commercial stations)
ASCAP and BMI offer rough price guidelines, while SESAC calculates pricing individually.
Step 4: Set Up Monthly and Quarterly Reporting
SoundExchange requires detailed track-by-track reporting. ASCAP, BMI, and SESAC have their own formats depending on your license. Many new stations underestimate this part and later must revise months of data.
Step 5: Save All Contracts and Confirmations
Each organization sends confirmation documents. Save them — they are essential if any disputes arise.
Practical Tips
- Register with SoundExchange early — it usually takes the longest.
- Plan your annual budget because the combined licenses add up.
- Check whether discounted rates apply to your station type.
- Track music usage manually or with software to avoid data loss.
Template: Track Reporting Table
Columns:
- Date
- Start time
- End time
- Artist
- Track title
- Duration (sec)
- Listener count at playback
- Report type (SoundExchange / original content)
- Comment
Template: Budget for an Online Radio Station
Sections to include:
- SoundExchange annual fee
- ASCAP annual fee
- BMI annual fee
- SESAC annual fee
- Hosting and streaming costs
- Software/subscriptions
- Microphone and equipment expenses
- Contingency funds
Monthly Checklist
- Submit SoundExchange reports
- Update ASCAP/BMI/SESAC data if required
- Verify listener statistics
- Check that all tracks were logged
- Review compliance with license conditions
- Archive monthly documents