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Only the songwriter and the publisher get royalties from songs on the radio. The PROs (performing rights organizations) collect royalties and distribute them to the songwriters and publishers. In some countries both the singer and the songwriter earn royalties when their song gets radio airplay.

How much does it cost to start a radio station? The cost of starting a radio station can vary depending on the size and scope of the project. Generally, start-up costs will range from $10,000 to $100,000. Key expenses include licensing fees, broadcast station construction permit, and equipment purchases.

In this country, the average fee for a single play of a song by a commercial radio station is from 4 to 7 dollars. Much depends on the rating of the radio itself and the number of its listeners.

The profitability of your radio station will depend on your audience size, advertisers and your programming costs. Advertising makes up the lion share of a radio station's revenues so, in order to be profitable, you will need to secure a number of advertisers.

The listening audience, similar to a TV audience and social media users, are the product being sold to advertisers. This is how radio stations make money; through advertising. Extra income also comes from sponsored content and events (however, this is also a form of a advertising) as well as charging callers.

Ing to the most recently available data, in 2022 just 12.2 percent of surveyed radio stations reported that they were showing profit, less than half the figure reported for the year 2000.

How To Start a Radio Station in Nine Steps Choose a Broadcast Format. Evaluate the Demand for Your Radio Station. Obtain Funding for Start-Up and Ongoing Costs. Ensure Licensing and Regulatory Compliance. Purchase Necessary Equipment and Studio Setup. Develop Programming for Your Audience. Hire Staff and On-Air Talent.