How Music Royalties Work for Internet Radio Worldwide
Legal use of music in online radio broadcasting
When operating an internet radio station, broadcasters use protected intellectual property such as musical compositions, performances, and sound recordings. In most countries, using these works without proper authorization or reporting may result in civil liability, statutory damages, or other legal consequences under local copyright law.
Royalty regulation for internet radio is not unified globally. Each country applies its own legal framework, licensing requirements, and reporting standards. As a result, broadcasters must comply with the rules of the country (or countries) in which their service is legally established or targeted.
Collective management organizations and royalties
In many regions, copyright holders delegate rights management to collective management organizations (CMOs), also known as performance rights organizations (PROs). These organizations:
- License specific uses of music
- Collect royalty payments from broadcasters
- Distribute revenue to composers, performers, publishers, and record labels
The exact structure varies by jurisdiction, but internet radio stations commonly need to account for two distinct categories of rights:
- Musical works (compositions and lyrics)
- Sound recordings (master recordings and neighbouring rights)
Depending on the country and type of stream, these rights may be licensed and reported to different organizations.
Example: Internet radio royalties in the United States
The United States follows a split-rights model, which is important for internet radio operators to understand.
Musical compositions
Royalties for songwriters and publishers are handled by performance rights organizations such as ASCAP, BMI, SESAC, or GMR. These licenses are typically obtained directly by the broadcaster.
Sound recordings (digital performances)
For non-interactive internet radio, royalties for performers and sound recording owners are administered by SoundExchange.
Key characteristics:
- Applies only to non-interactive streams
- Covers royalties for featured artists, non-featured performers, and record labels
- Requires regular, detailed usage reports
- Reporting formats and data fields are strictly defined
Reporting obligations and data accuracy
In many countries, internet radio stations are required to submit playout or usage reports, typically including:
- Track title
- Artist name
- Album or release
- ISRC (where available)
- Date and time of each play
- Number of performances or listeners
Accurate reporting is essential. Incomplete or incorrect reports may lead to rejected submissions, penalties, or recalculated royalties.
Reporting support in Streaming.Center Internet radio platform
Our internet radio control panel includes built-in reporting tools designed to support SoundExchange-compatible reporting for broadcasters operating in or reporting to the United States.
In addition:
- If a radio station operates in another country
- And is required to report to a different collecting society
- The station owner may provide a sample report format or technical specification
Based on this information, we can add support for that reporting format directly into the control panel, enabling automated generation of compliant reports.
This allows broadcasters to meet local reporting requirements while continuing to use the same broadcasting infrastructure.
Important clarification
We do not provide:
- Legal advice
- Licensing or contract negotiation services
- Royalty collection or payment handling
Each broadcaster is solely responsible for identifying applicable copyright organizations, concluding the necessary license agreements, and submitting reports and payments in accordance with local law.
Our platform functions strictly as a technical broadcasting and reporting solution, designed to simplify data collection, logging, and report generation.
Summary
- Internet radio royalty rules differ by country
- Most regions rely on collective management organizations
- The United States uses a split system for compositions and sound recordings
- Non-interactive digital radio requires detailed, track-level reporting
- Our platform supports SoundExchange reporting and can be extended to other national formats on request
If your internet radio station operates in a country not yet covered by our reporting templates, you may submit an example report for evaluation and potential integration.