RadioCult breaks down what online radio stations need to know about music licensing

RadioCult has published a guide explaining how music licensing works for online radio stations, including the separate rights on every track, how fees are set, and which records stations need to keep. The guide matters because licensing costs and reporting rules can shape whether a small station can launch and stay compliant.

Why it matters: - Online radio stations do not need a broadcast license or transmitter, but music licensing starts as soon as a station plays recorded music. - Licensing costs are tied to audience size and usage, which can materially affect a station’s budget. - Compliance depends on keeping accurate play logs, which can be difficult for live, pre-recorded, and mixed programming.

What happened: - RadioCult outlined what music licensing involves for online radio stations, including who issues licenses, how fees are calculated, and what records stations must keep. - The company built the guide for independent and community stations using its online radio software. - RadioCult also offers an internet radio royalty calculator for stations in the United States, the United Kingdom, Canada, Ireland, France, and Germany.

The details: - Every recorded track carries two separate copyrights: one for the composition and lyrics, and one for the specific recording. - Song rights belong to songwriters and publishers. Recording rights belong to record labels and performers. - A license for one right does not cover the other. - In the United States, song rights are licensed through performing rights organizations such as ASCAP, BMI, SESAC, and Global Music Rights. - In the United States, recordings are licensed through SoundExchange, which administers the statutory license for online and satellite radio. - In the United Kingdom, PRS for Music handles songs and PPL handles recordings. - PRS for Music paid £1.02 billion to songwriters, composers, and publishers in 2024. - PPL reported revenue of £301.0 million in 2024, its highest level in 90 years. - Most licensing bodies charge the greater of a percentage of station revenue or a usage-based fee. - Most also set a minimum annual fee, including for small and noncommercial stations. - Under U.S. statutory licensing, one performance equals one listener hearing one track. - A station averaging 50 concurrent listeners and playing 15 songs an hour generates 750 performances in that hour. - Station type affects the rate. Commercial, noncommercial, and educational stations are treated differently. - In the United States, webcaster recording rates are set by the Copyright Royalty Judges for five-year periods. - The current U.S. rate proceeding covers 2026 through 2030. - Stations playing only their own music, royalty-free tracks, or talk content are generally outside music licensing requirements. - Buying a download, CD, or record does not cover public performance rights. - Standard live or scheduled streaming is treated as performance, not reproduction, so most stations do not need a mechanical license. - Downloads and podcasts that use commercial music usually require separate clearances. - A license obtained in a station’s home country typically covers listeners abroad, but terms vary by license. - RadioCult says its scheduling and reports help stations maintain playout logs. - RadioCult’s optional 24/7 Music Recognition add-on identifies and timestamps each track on the stream for royalty reporting, including live and pre-recorded shows.

Between the lines: - The guide frames licensing as a launch issue, not a back-office detail, because the wrong setup can create compliance risk before a station grows. - The emphasis on logs and reporting shows that music licensing is as much about data management as it is about rights clearance. - Stations with mixed formats face the most operational complexity because different content types can trigger different licensing rules.

What's next: - Stations should check the published rates for their category before setting a budget. - Stations should confirm territorial coverage in their license terms before streaming to international listeners. - RadioCult says stations should verify their position with the relevant licensing bodies or a copyright adviser before broadcasting. - RadioCult plans start at $33 per month, and every plan includes a seven-day free trial.

The bottom line: - For online radio stations, music licensing is unavoidable once recorded music enters the stream, and the cost depends on rights, audience, and reporting discipline.