What Music Licenses Do You Need for Internet Radio in the US (August 2026)

Running an internet radio station in the United States is easier than ever, but the legal side trips up most new broadcasters. I built my first station in 2026 and had to figure out which music licenses internet radio stations actually need the hard way. This guide gives you the shortcut.

Music licensing for internet radio is permission from copyright holders to legally stream songs to listeners online. In the US, that means securing multiple blanket licenses from Performance Rights Organizations (ASCAP, BMI, SESAC, and GMR) plus coverage from SoundExchange for sound recording rights. Skip any of those and you risk DMCA takedowns, lost streaming privileges, or lawsuits with statutory damages up to $150,000 per work.

What Music Licenses Do You Need for Internet Radio in the US?

To legally stream music on an internet radio station in the United States, you need five separate music licenses internet radio operators must carry: a blanket license from each of the four US Performance Rights Organizations (ASCAP, BMI, SESAC, and GMR) for public performance of the musical composition, plus a SoundExchange license covering the sound recording royalties under Sections 112 and 114 of the Copyright Act.

Each license covers a different rightsholder, and no single organization can give you permission for all of them. You need all five to be fully compliant in 2026.

The Two Copyrights Behind Every Song You Stream

Before you pay anyone, you need to understand why one license is never enough. Every recorded song is split into two distinct copyrights, and each one is owned and licensed separately.

The musical composition copyright covers the melody, lyrics, and underlying written song. The publisher and songwriter control this layer. When you play a song, you are publicly performing that composition, which requires permission from the composition owner.

The sound recording copyright covers the specific recorded performance you are streaming – the vocals, instruments, and production of a particular artist’s version. The record label typically owns this layer, and performers get a share of royalties from it.

Because two different copyright holders are involved, two different licenses are required to legally stream one song. This is why you cannot just sign up with ASCAP and call it done.

Why this matters for your station

When someone asks “do I really need a license for my internet radio station,” the answer is yes for both layers. ASCAP alone covers only the composition side. SoundExchange covers only the recording side. You must carry both to play a single track.

What Is a Blanket License for Internet Radio

A blanket license is a single agreement that gives your station permission to play any song in a performing rights organization’s catalog, without negotiating song by song. For internet radio, this is the standard way to cover performance rights.

Instead of contacting every songwriter individually, you pay one annual fee to a PRO and they distribute royalties to their members based on what you actually play. Royalty reporting is how the PROs know which artists to pay.

How blanket coverage works in practice

You sign one contract with ASCAP, one with BMI, one with SESAC (if you qualify), and one with GMR. Together they cover virtually the entire US commercial music catalog. One Reddit user summed it up: “BMI, ASCAP and SESAC are who you need to contact” for internet radio licensing.

Blanket licenses do not cover sound recordings. That is a separate right handled through SoundExchange’s statutory license or direct deals with labels.

US Performance Rights Organizations You Must License

There are four PROs operating in the United States. Each represents a different group of songwriters and publishers, and none of them overlap. If you only sign with one, you are missing roughly a quarter to a third of all commercially released songs.

ASCAP – the American Society of Composers, Authors and Publishers

ASCAP is the largest US PRO, with over 900,000 members. For internet-only stations, ASCAP offers a New Media license (not the traditional radio license). ASCAP states directly: “If you are an Internet Radio station who is not licensed by the FCC, you will need a New Media license from ASCAP.”

Annual fees scale with your revenue and listening hours. Apply at ascap.com.

BMI – Broadcast Music, Inc.

BMI is the second-largest PRO, covering more than 1.3 million songwriters and publishers. Like ASCAP, it offers internet radio agreements under its New Media program. BMI is known for competitive pricing and a faster application process, which is why many small stations start here.

SESAC – the Society of European Stage Authors and Composers

SESAC is smaller and selective – only a few thousand affiliates – but it represents high-profile writers in country, gospel, and Latin music. SESAC is invitation-only for licensees as well, and pricing is not published. You must contact SESAC directly to get a quote and eligibility.

GMR – Global Music Rights

GMR is the newest US PRO, founded in 2013. It represents some of the biggest names in pop and rock, so even though it is the smallest in member count, missing it can expose you to high-profile catalogs. Apply at globalmusicrights.com.

Do you really need all four PROs?

Yes, if you want to play mainstream commercial music without risk. Each PRO controls rights you cannot get elsewhere. Skipping one means any song from that catalog can trigger infringement claims. Real broadcasters confirm: “I will need licenses from ASCAP, BMI, SESAC, and SoundExchange.”

SoundExchange and Sound Recording Rights Explained

SoundExchange is the nonprofit designated by the US Copyright Office to collect royalties for sound recording rights on non-interactive digital streams. If your station streams music online and the listener cannot pick specific songs on demand, you owe royalties to SoundExchange.

SoundExchange covers the second copyright layer: the actual recording, not the song itself. Without this license, your ASCAP and BMI coverage is incomplete.

Section 112 and Section 114 statutory licenses

Two federal statutory licenses govern internet radio sound recordings. Section 112 covers ephemeral reproductions – the temporary server copies your streaming software makes to deliver audio. Section 114 covers the actual public performance of the sound recording by digital audio services.

Together, these statutory licenses let any non-interactive webcaster legally stream nearly all commercially released sound recordings in the US, provided you follow the rules.

Royalty reporting requirements

SoundExchange requires detailed quarterly reports listing every song streamed, the artist, the label, and the total performance hours. Most small stations handle this through automated playlist logs from their streaming host, but DIY operators must maintain records manually.

Failing to report can result in penalties and loss of the statutory license. If reporting feels overwhelming, a platform solution like Live365 includes automated reporting as part of its service.

How Much Does Internet Radio Music Licensing Cost?

Real costs vary widely based on station size, revenue, and whether you license directly or through a platform. Below is a practical breakdown of what US broadcasters actually pay.

DIY direct licensing cost ranges

For a small internet-only station with modest listener hours, expect annual PRO fees to land between $400 and $1,500 per PRO. One Reddit user reports a rough total of “around $2500 per year” when combining ASCAP, BMI, SESAC, and SoundExchange for a hobby station.

SoundExchange minimum fees for non-commercial webcasters can start lower, but commercial stations pay per-performance rates set by the Copyright Royalty Board.

Platform-bundled licensing cost ranges

If managing four PROs plus SoundExchange sounds like a lot, hosting platforms bundle it for you. Live365 advertises licensing starting at roughly $75 per month, which covers all five US rights organizations and includes automated royalty reporting. For stations under a few thousand listeners, this often costs less than going direct.

Hidden costs to budget for

Beyond license fees, plan for stream hosting, metadata delivery, and possibly music reports software. Geo-blocking tools to restrict listeners outside your licensed territories also cost extra. Hobby stations under 200 concurrent listeners can usually keep total annual costs under $1,000 with a bundled platform.

DIY Licensing vs Platform Licensing Approach

You have two paths to get your internet radio music licensing sorted: do it yourself by contacting each rights body, or sign up with a streaming host that includes licensing in the monthly fee. Both work legally.

When DIY makes sense

DIY is best if you want full control over royalty reporting, plan to scale into a large commercial operation, or want to license territories beyond what any single platform covers. Direct contracts also give you flexibility to negotiate rates once your audience grows.

When platform licensing makes sense

Platform licensing is best for new stations, hobby broadcasters, and anyone who does not want to deal with five separate contracts and quarterly reports. As one forum user put it: “You can skip the music licensing fees – $75 per month with Live365 includes licensing.”

The tradeoff is that platforms set their own terms, and you cannot customize coverage the way direct licensing allows.

How to Get Licensed Step-by-Step

If you decide to license directly, here is the order I recommend based on what worked when I set up my own station. The whole process takes about two to four weeks if you have your documents ready.

1. Confirm your station is internet-only and not simulcasting an FCC-licensed FM/AM signal. FCC licensing is separate and not required for purely online broadcasts.

2. Register your business entity or sole proprietorship, and gather your projected monthly listener hours and projected revenue.

3. Apply for ASCAP’s New Media license at ascap.com. Complete the online form and submit projected usage.

4. Apply for BMI’s Internet Audio license at bmi.com. BMI typically issues agreements within a few business days.

5. Contact SESAC at sesac.com to request a New Media license. Be prepared for selective approval and a quoted rate.

6. Apply for GMR at globalmusicrights.com. Their form is short and approval usually takes under a week.

7. Register with SoundExchange at soundexchange.com as a service provider. Submit your Section 112 and 114 election.

8. Set up royalty reporting – either manually using your playlist logs or via your streaming host’s dashboard.

9. Document your catalog limits if any PRO denies you, and plan geo-blocking accordingly.

10. Renew annually and keep certificates on file. Save every invoice in case of a future audit.

Save copies of every license, invoice, and report. If a PRO ever questions your coverage, these documents are your proof of compliance.

Common Licensing Mistakes and DMCA Compliance

Even well-meaning broadcasters make these errors. Avoid them and you will save yourself thousands in legal fees.

Mistake 1: Thinking you need an FCC license

Internet-only stations do not need an FCC license. The FCC regulates over-the-air broadcasts. This is a frequent point of confusion, and some operators delay launching while waiting on a license that does not apply to them.

Mistake 2: Licensing only one or two PROs

Each PRO controls exclusive catalogs. Signing only ASCAP and BMI still leaves SESAC and GMR songs exposed. Complete coverage requires all four.

Mistake 3: Skipping SoundExchange

Some new broadcasters think ASCAP and BMI cover everything. They do not – those cover only the song, not the recording. SoundExchange is required to legally stream the recorded performance.

Mistake 4: Ignoring DMCA compliance beyond licensing

Licenses give you permission to stream music, but DMCA also requires accurate stream metadata, proper artist attribution, and responsive handling of takedown notices. Many hosts handle this for you, but DIY operators must do it themselves.

Mistake 5: Assuming non-commercial status is exempt

Non-commercial stations still need PRO and SoundExchange licenses. Some reduced rates exist through SoundExchange for non-commercial webcasters, but the requirement does not disappear.

Geo-protection and listener blocking

If you only hold US licenses, you are legally required to block listeners outside the US. Most streaming platforms offer geo-blocking tools. Failing to restrict access to non-licensed territories can void your US licenses entirely.

Royalty-free music as a partial alternative

Royalty-free catalogs like Jamendo, AudioJungle, and Storyblocks let you stream music without paying PROs or SoundExchange, but you must avoid mixing royalty-free tracks with commercial releases in the same broadcast block unless you also hold the proper licenses. Many hobby stations use 100 percent royalty-free music to avoid licensing entirely, though this limits you to non-mainstream content.

Frequently Asked Questions

Final Thoughts on Internet Radio Licensing

The short answer to which music licenses internet radio stations need in the US is: all four US PROs plus SoundExchange. Five contracts, five rights bodies, one fully compliant station. Once you understand the two-copyright split behind every song, the licensing picture becomes straightforward.

Your next step is to choose between DIY direct licensing and a platform-bundled plan. For most new broadcasters, the platform route is faster and cheaper in year one. As your audience grows, you can always migrate to direct contracts and negotiate better rates. Whichever path you pick, get your licenses in place before you stream a single track.