So, you want to run an internet radio station?

It's easy to produce the audio, and to sound just as good as the other radio stations - but you need to ensure you have the proper licences. Internet Radio broadcasters that have music as a part of their programming need to have licences from the owners of the copyright in both the recordings that they play and in the underlying songs.

You will probably need to have at least two licences. For many situations (if you plan to make radio advertisements, for example) you'll need to investigate further licences as well.

PRS for Music
"PRS for Music" is the new name for the MCPS/PRS Alliance; they represent the performers and publishers of the work. They offer two sets of licences: first, a limited online exploitation licence, which is for people earning less than £6,200 a year from online use of music. Annual licence fees start from £107 + VAT. If you're earning more than that, you need to investigate their full online music licences.

PPL
PPL represents the record companies. They have a small webcaster licence, which is roughly equivalent in cost and scope to PRS for Music's limited licence. For larger operators, they offer a standard webcaster licence.