Radio Paradise is a for-profit business, and as such doesn’t qualify for the 501(c)(3) status that a volunteer-run public FM station would. “The business model is unusual, which often prompts questions about it. Traditionally it’s been the business — not the customer — who assigns a value to a product or service. Or a non-profit foundation provides a service to you or to others and then tries to convince you that they’re worthy of your support.”
Does Radio Paradise pay royalties to artists?
We certainly do. We pay fees to the industry groups ASCAP, BMI, and SESAC (who represent songwriters & publishers) in very much the same way that an FM station does. These fees are distributed to songwriters & publishers based on periodic airplay surveys & reports.
In addition, Internet radio stations are subject to additional copyright fees (performance royalties), paid to yet another industry group called SoundExchange. They represent performers and record companies. RP pays a surprisingly hefty fee to SoundExchange each year, which is distributed to artists and record labels.