What is radio online? Radio online or internet radio is a computer-based audio stream transmitted over the Internet. Internet radio is commonly known as webcasting because it isn't transmitted widely through conventional radio means. Instead, users tune into their favorite songs by listening to a radio online using specialized software, and through this, they can listen as much as they want.
So, how is radio online used in today's music scene? The rise of the iPod and other portable media players made it possible for ordinary people to turn the "go to" device for music, radio included - into an mp3 player. This not only revolutionized the radio industry, but also created new audiences for online radio stations. In fact, the rise of online radio stations has made the United States the largest nation in the world when it comes to radio.
One of the most common ways that online radio stations make money is through music licensing. For every song played through one of these stations, there is generally an associated set of rights sold to the radio station owner through a copyright royalty board. The owner of the copyright holds the exclusive right to broadcast this track as part of their radio program, with the permission of the listener - generally designated as "casters." All radio stations are required by law to offer this type of licensing.
There are limitations to this licensing system, however. First, some radio stations may not play music that is the focus of a particular religion or group. (The most popular online radio stations, of course, do have religions focusing on Christianity.) Second, some tracks are available through traditional radio stations, but not through online music services. (CDs, for example, cannot be streamed from a web site based on a "public" music license.)
Another method that some radio stations use to generate revenue is by selling sponsorship deals. These contracts come in many different forms, with some requiring an upfront investment and others requiring monthly payments. Some contracts will allow the radio station to use the technology provided by the internet radio station - such as providing web-based radio advertisements. This is especially common with newer radio stations who wish to attract more audience. These types of sponsorship deals tend not to include a traditional radio station royalty for the music itself, but rather a pay-per-play payment for the use of the audio.
Online radio stations have grown in popularity in recent years. With the advent of streaming media, listeners can now listen to their favorite radio shows wherever they are. And with the ease of setting up a personal account and creating a user ID and password, anyone can log on and begin enjoying their favorite radio show. Internet radio stations are starting to compete with traditional radio stations for those precious dollars spent each week. And with no additional equipment required, there's no need to worry about the royalty costs or the high cost of acquiring streaming media - just enjoy your favorite show whenever you want!