Is it profitable to own a radio station?
The answer depends on factors like market size, existing competition, and station type. In general, owning a station can be profitable since you can reach a large audience. With few stations in a market, rates for ads can be higher. Popular local stations make over $60 million yearly in ad revenue. Profit depends on audience size, programming costs and advertisers.
How much does it cost to buy a local radio station?
You can start an FM station for under $15,000. Main costs are engineering, studio equipment, and transmitting equipment. It may take time to get a frequency assigned. It’s illegal to operate without a license, even at low power.
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For an internet station, you just need a computer, internet connection and a host. Stations pay royalties on songs played. Rent varies greatly by location. Meanwhile a Florida or Tennessee lease may be under $1,000.
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Equipment needed includes: mixing board, microphones, headphones, media server and scheduler.
Consider your target audience and programming. You can launch online first then go terrestrial later.
- To start internet radio you need: computer, internet and host. Tell friends you have a new online station!