How can internet radio operate for free? Chances of finding a free radio station in terrestrial broadcasting are remote as such stations can work only if a generous patron offers financing for each and every transaction. Needless to say, very few persons are keen on playing a patron on such a grand scale.
Yet, setting up of free internet radio stations is considered as a definite possibility. How? Well, radio stations have to pay music production houses a sum known as royalty that is charged on each and every song played. They have to purchase the right to play songs for public. This royalty charges constitutes the biggest investment made by the radio station.
Internet radio stations have the option of relying on royalty free music. Why would anybody want to listen to royalty free music?
Well, royalty lapses as time expires. While all listeners will not be interested in listening to old music, there certainly is a niche market big enough to help internet radio stations function properly. In any case, the cost of doing business on the internet and transmitting data through the internet is always less as compared to terrestrial radio stations.
The combination of low cost and option of relying on royalty free music means that free internet radio stations can exist. Another advantage of such an approach is that the radio station can offer music and content without any advertisements in between. This can be very attractive option for those who are sick and tired of spending time on radio waiting for adverts to end so that they can continue listening to music. All said and done, this is sufficient reason for enterprising individuals to set up internet radio stations.