How much revenue can you get from an online radio station?

**Pwdrin** · 01-11-2009 07:55 AM

I have been talking to a few of my mates, we are all music lovers. We are thinking about opening an online radio station, if there is enough money in the business to pay the bills.

Has anybody done this, or know anybody who has. The costs can be as little as ~£30 a month and ~£100 a year for licences.

**fthom** · 01-11-2009 08:02 AM

Sorry don't know anything about this type of business, but there are other things to consider. You'd have to pay for rights to use music for everything, and there would be money going out constantly towards this!! Also, how would you make money from it, through advertising?

**TheBigIdea** · 01-11-2009 08:24 AM

i'm interested to hear the plan- what sort of radio station are you planning to start?

an online radio is technically faster paced than the normal one - you tend to develop things faster and rake in revenues faster. And people tend to be kicked out pretty fast, because not many users tend to stick to one radio station , especially when it's a startup.

getting advertisers will be the core business - but the problematic lies in capturing eyeballs first, or else the advertisers won't come.

so how're you going to make sure that your content caters to a wide audience. ( i know that music is a taste thing, a person either likes it or doesn't)

let's say you're doing indie rock kind of music, you're only gonna attract this certain niche. so you got to know how large this segment is. Do some demographics and see the numbers.

the worst thing about online radio is this : you got to maintain the listener volume. If it drops your advertisers aren't going to be happy.

I have a couple of ideas that don't involve online radios to rake in cash using music - mainly using videos. It's an easier ball game.

AIM me if you're interested. Music junkies only!

**Pwdrin** · 01-11-2009 08:35 AM

It will be based on dance/top40 hits music. Also the site will run a blog to bring users in. The overall aim of the site will be style, so the blog will also contain a fashion section.

There will be weekly shows on either new songs or about fashion. I know a person who is hitting it high on youtube, about 10k - 100k visitors per video. Who is might be interested in doing his own show time etc. Even though I know if he gets that much listeners it will cost a bomb.

I will be looking for more presenters than just my friends etc. But until it brings in money, nobody will get any lol. I'm tight and don't want to lose a bomb.

**andymayhem** · 01-11-2009 10:35 AM

personally i wouldnt even try and make money from ads on a radio station, i would develop my own products and advertise them making money from sales i am generating through content.

**TheBigIdea** · 01-11-2009 10:53 AM

i think video content would be the way to go - you have lots of fun doing it, and if it spreads, then great! and don't forget to monetize those views

look at diggnation as an überexample, they advertise some much at the beginning and at the end. (unfortunately for the dudes at Digg, they're not turning in a profit yet, probably bcos their server fees are too high)

**hugh009** · 01-11-2009 03:26 PM

I agree - VIDEO - is the way to go with this one! I have the perfect guy that has some KNOCK OUT fashions that I mentor that is a YE member.

I have been in the radio biz and its tough. If you go to the web site portal I think called 365.com you will see literally HUNDREDS of stations. I know a person who had a knock out site design and he went broke.

Let me know if you want to contact Ellie. PM me.

Hugh

**Pwdrin** · 01-11-2009 03:31 PM

Live365.com is for USA, and the licences are only available in the UK, through them. So as I aim to be doing everything in the UK. British news, new British songs etc. They aren't that bad for myself. The ones who are doing it from Live365 from the UK, and buying the licences are breaking the law. Somehow I think that might turn potential advertisers away. I have been thinking over the past few hours and have been through 100s of sites. I am not going to bother been a DJ through the web. I am currently looking at been a provider for streaming. Both videos and Radio, as the few in the UK, seem rather expensive. But I am still reading.

**Pwdrin** · 01-12-2009 10:21 AM

Actually I really want to do it again. Just came back from school and I already have 3 people willing to help me out as DJ's. It is just the cost that is scaring me.

Would I be able to get support, maybe a joint business with a few people?