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How do internet radio stations make money?

They may make “revenue”…with click-bait kind of graphic ads…but REAL internet radio stations…from Pandora and Spotify to the hundreds or thousands of out-of-work radio personalities (dee-jays), are completely throttled due to the onerous responsibility to pay-per-play royalty fees to artists, whose music they are featuring.

The big guys like Pandora have millions of developmental dollars behind them, but are having terrible trouble getting to profitability due to such. That’s why Pandora, after a decade of spending tens of million’s in R&D has raised the “For Sale” sign and so far having trouble even achieving that.

For the little guys…as I said before, displaced radio pros who keep their skills honed by putting together an internet radio station on their spare bedroom…or the music-passion guys, who just like to experiment with a real (but microscopic) audience, its really a hobby level entity.

The same could be said for “Podcasting”…but that element of audio entertainment is mostly spoken word, not music based…does not have the blood-sucking rights-guys down their wallet. Podcasting, can produce a living for some, as the cost component is very small. However the ones that make real money are few and far between, as again, they need the listeners that few can afford attract via marketing or have the national “base” to support it.

Real, terrestrial radio stations have an almost 100 year head start and due to licensing by the FCC have the real “waterfront property” in mass media (though with the advent of the internet that property is growing a pretty good bunch of weeds now). But traditional radio (which is MY business for over 50 years) has elements that is allowing it to stay relevant in this digital world:

  1. It’s Free. OK so you need to put up with a few commercial…get over it <smile>
  2. It’s Easy. On button, dial, volume switch, off button. Simple, no tutorial needed.
  3. It’s been here since 1920…and every car is fitted with one and virtually every home has multiple receivers. And certainly that smart phone in your hand can either stream local (or national) terrestrial radio…or some have chips to receive over the air FM signals that do NOT mess with your data limits.
  4. It’s “curated” by pros who know how to schedule and flow music and information. I made my life doing it for decades. It works.
  5. It’s varied…if one station doesn’t serve up what you want there are another fifty or so choices on most AM and FM bands…or a bazillion choices via IP stream.

Internet radio does offer variety “to infinity and beyond!”. But that variety is what limits any of them from really being financially successful. It’s narrow-casting, not broadcasting. It’s micro-audio, not mass media. 25 listeners at any given time is Success! While with terrestrial radio 50,000 at any given time is “pretty decent”.

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Riggro Digital is India’s 1st, Pioneer & most successful Android & Internet Radio streaming service. All our Radios plays flawless on just 2G networks without buffering in Dolby HD Stereo. Our Android Radios are really cool and extremely powerful with direct connect to social media. With the internet radio growing at a rapid rate each year & internet access so easy, an ever growing client base and the best team behind us we’re loving what we do and would love to have you come along for the ride. Smart Phones have become the most powerful Media in every hand. Being the Pioneers in Android Radios & Internet Radio Stations, We have tried to change the way a Radio is heard. Streaming radio online from India has become so simple with Riggro Digital! Just Go ahead & start your internet radio station from India’s 1 st & No.1 Internet Radio streaming service provider. All our Radios play flawless on just 2G/ 3G networks without buffering in Dolby HD Stereo. Our Stunning Android apps with direct Social connect play internet radios flawlessly on Ice cast/ shout cast stream servers. With the internet radio growing at a rapid rate each year & internet access so easy, the future of Internet Radios is bright. Smart Phones have become the most powerful Media in every hand. Being the Pioneers in Android & Internet Radio Stations, We have tried to change the way a Radio is heard. So why wait when you can start your own internet radio channels in just few easy steps!

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