Building your dream - How to start an internet radio station
If you have a love of music, I'm sure there was a time when you dreamed of owning your own radio station. Part of the joy of music is the ability to share your passion with other people.
In the USA, owning a terrestrial radio station is beyond the reach of the average person. That's okay though, because terrestrial radio stations are losing listeners... not just to satellite and cable radio, but Internet Radio too.
In fact, the latest statistics show that Internet Radio is poised to become one of the main sources of supplemental audio entertainment over the next 10 years.
In this article, we can't promise great riches. If you're interested in starting your own radio station for profit, you'll face the same challenges and hurdles that any other online business has to overcome. It requires investment, dedication, hard work, and... luck. However most Internet Radio stations are hobbies. They don't make much, or any money... they do, however, bring enjoyment to operators and listeners alike. And how do you put a price on that?
Minimum Requirements
This article assumes you own a PC 3 years old or newer, on a broadband (Cable, DSL or equivalent) connection. If you have an upstream connection of 128kbps or better, then you can run a radio station. You can check your upload speed by visiting DSLReports.
Is it expensive?
Not at all. If you have good internet connection, a ton of music or content, a static IP address and a PC, you can start a legal internet radio station for less than $20. We'll take you through the process of determining format, obtaining licensing where necessary, setting up basic equipment and launching your station. You'll be surprised at how easy, and inexpensive, it is to get off the ground.
A word of caution
We're offering a basic overview of starting a station. If you are serious about building an online radio station, you're going to have to take time to study installation and configuration guides provided by the various companies mentioned in this article, visit forums to ask for help when things get tricky, understand basic bandwidth concepts, and have the patience to work on your passion. It's not rocket science, but it will require reading and learning.
Deciding on a format for your station
This is a very important decision. You have two basic choices. You can program for the listener, or program for yourself. If you want to maximize listeners, you'll need to research what's hot. If you're more interested in sharing your music collection and less concerned about listener counts, then you can go with the music you already own. Several stations also offer nothing but talk. What's your goal?
Your station's format also determines if you need to be concerned with paying royalties. Below are three broad categories for format. Chances are your station will fit into at least one, and maybe all three...
Talk Radio
Do you like to talk? Perhaps talk radio is the choice for you. If you are 100% talk and you play no material protected by copyright, you do not need a license to webcast your content. But if your station plays jingles, music, or any other content that is protected by copyright, then royalty payments are required.Independent (Indie) Radio
Do you live in an area with a lot of local bands? If that's the scene you're into, then maybe you can launch a station that plays music from local artists. You can attract listeners by putting up posters in bars and clubs, and working with the bands so they can help promote your station too. If you play nothing but independent artists, and you have the written permission of each artist to play their music, you do not need licensing, provided the music was not only recorded by the artist, but also written by the artist. If you play independent bands and artists that "cover" someone else's music, royalty payments are usually required because the composer/author of the song is entitled receive compensation for their work.Music Radio
This is probably the most popular form of Internet Radio. If you have a massive collection of CDs, MP3s, or if you've been shopping on iTunes/Napster, you can play your music collection on your station. You'll need a lot of music. Nobody wants to hear the same tracks every 3 hours. It's a good idea to build a collection that will allow at least 24 hours of continuous play without repeating the same song more than once. To webcast your music collection, you definitely need to pay royalties to be legal.
Once you have decided on a format, it's time to look at the US copyright and licensing laws. (If your station originates, or is streamed from, countries outside the USA, you should do your own research on laws that apply where you live).
Understanding US laws regarding royalties
If your new US-based station webcasts any form of content that is protected by US copyright law, you do not have a right to webcast it without a license, even if you own the CD or purchased the MP3 files through a service such as iTunes or Napster. The penalties if caught webcasting copyrighted music without paying royalties can be financially devastating. The word "bankruptcy" could be quickly added to your list of life experiences.
Licensing your station
So what are the alternatives to running an illegal station? Well, if you've visited BMI, ASCAP, SESAC and SoundExchange, you'll know that these are the agencies that collect royalties on behalf of the artists and songwriters. They have a lot of requirements, one of which is a healthy amount of money. In addition, they require monthly reports including all songs played, when the songs were played, your station's revenue, expenses and more. For a small station just getting started, direct-licensing with the above agencies involves a minimum investment of $3000 annually, and a ton of paperwork that can tie you up for hours.
Does this mean that for you to webcast your music collection, you have to pay licensing fees of $3000/year or more? No.
LoudCity Licensing
LoudCity is the affordable alternative. We pay the big fees to the above agencies, and we take care of all that paperwork too! All you do is operate your station, and we take care of the rest. LoudCity service offers blanket licensing with SoundExchange,BMI, ASCAP and SESAC all for one low monthly fee. Licensing with LoudCity will save you thousands, and give you peace of mind knowing that your station is legal. More about licensing a little later...
Setting Up Your Station
There's a ton of options out there for originating your webcast. For getting started on a budget, we're going to suggest free software. However, if you're up for spending money right from the start, we suggest you review SAM3. If your collection of music is on CD, you'll need to convert them to MP3 files.
Using Winamp with ShoutCast
Your PC connected to a broadband connection can be set up as the originator of your webcast. You will need to download Winamp, which is what we recommend for those who can only afford "free". Winamp can convert CD music to individual MP3 files. Since LoudCity relies on the data contained in MP3 files (Title and Artist information) to cover your royalty payments, it is important that your station webcast music in digital file format. Converting your entire CD collection to MP3 files can take time, but it's worth it.
Once you have downloaded Winamp, it's time to set up your station. If your station will play music, gather all those MP3 files and put them in a folder on your hard drive. Open Winamp, add the folder to your Media Library, and from there, you can add them to a playlist. You can then shuffle the playlist to make sure your webcast complies with the US laws (DMCA) regarding song play. A summary of these rules is as follows...
1. User may not include in User's broadcast activities (Broadcast Programming) specific sound recordings within one (1) hour of a request by a listener or at a time specifically designated by the listener.
2. In any three-hour period, User should not intentionally program more than three songs (and not more than two songs in a row) from the same recording; User should not intentionally program more than four songs (and not more than three songs in a row) from the same recording artist or anthology/box set.
3. Continuous looped Broadcast Programming may not be less than three hours long.
4. Retransmissions of User's Broadcast Programming may be performed at scheduled times as follows:
- Broadcast Programs of less than one-hour shall not be broadcast more than three times in a two-week period;
- Broadcast Programs longer than one hour shall not be broadcast more than four times in any two-week period.
5. User should not publish advance program guides or use other means to pre-announce when particular sound recordings will be played or the order in which they will be played.
6. User should only include in User's Broadcast Programming sound recordings that are authorized for performance in the United States.
7. User should pass through (and not disable or remove) identification or technological protection information included in the sound recording (if any).
To remain within the guidelines of the Digital Millennium Copyright Act (DMCA) your music station must follow the rules as outline above.
Optional Extras
Winamp comes with plugins that enable you to listen to your MP3 files. You can also research and download additional plugins, including the very nice, free, SQRSoft Crossfader plugin (which we recommend to give your station more of a flow without the dead spots between songs).
Test your playlist
Once you've set up your playlist, give it a listen. Does it all work? Is the transition from one song to the next good? If so, then you have completed step 1 - you have an origination point for your online radio station. Winamp allows you to randomize your playlist, which will help you stay within the guidelines of the DMCA. Once everything is set the way you want it, you now need a platform to stream your music to the world!
Stream Hosting
Start small... if you hit capacity, you can always upgrade to more streams. Outsourcing is the easiest way for non-technical station operators to get up and running quickly. View our list of preferred stream hosts for more information.
Test Your Setup
Once you're configured, test your station! Don't publish links to it... you need to become legal first. But it's okay to test your own stream and make sure it works. Have a friend test it from their home too. If all is well, then you need to take the final step before launch... making sure you are covered for royalty payments with LoudCity.
Get Licensed!
If your station's brand new, you can start small. LoudCity allows you to upgrade later if you start to get a lot of listeners. LoudCity licenses by Aggregate Tuning Hours (ATH). In simple terms, that is a calculation per-month of the number of listeners times the number of hours those listeners are connected. For example, three listeners, each connected for an average of 4 hours per day, for 30 days, would work out to be about 360 ATH for the month (3x4x30). LoudCity offers a Basic, and a Pro, package. Both are available at various levels of ATH.
Remember, licensing through LoudCity makes your station legal, and removes the headaches and hassles of reporting, all for a fraction of the cost of licensing direct. Our service allows you to concentrate on what you enjoy... music!
Launching your Station
Once you're licensed, you are ready to launch your station. If you have a website or web page dedicated to your station, be sure to include that info in your LoudCity registration and in your stream settings on SHOUTCast. Provide LoudCity with your stream links, and email all your friends! But be aware... the music industry has strict rules regarding where and how your stream may be launched in order to remain legal. All LoudCity stations must abide by these rules, or risk having their royalty coverage suspended or terminated.