Costs Associated with Starting a Radio Station

Turning on the radio on a drive to work is probably the best time to listen to some chit chat or just some good old humour to get you started with your day. The world of radio has expanded to unbelievable areas that, today there are a ton of station choices for every topic under the planet. If you are planning to start a radio station, you don’t have to worry about the costs as starting one is not as expensive as you might think. A lot of stations can become operational for under $15,000 and keeping those costs can be as less than $1,000 every month.  The first expenses include fees you need to pay to engineers, equipment and transmitting equipment. The costs that you would have to pay every once in a while is rent, utilities, and any miscellaneous expenses. Here are some of the costs that radio station owners incur.

  1. Radio Station’s Application: There is no application fee. However, you still need help from an engineer who knows how radio frequencies are allocated if there is one available in your area. The cost might be substantial, but it will make your life easier.
  2. Fees:  Some stations go in business without hiring an engineer, but all stations are not this lucky. Hiring an engineer can be helpful as he can help you prepare the application and finding the frequency you need along with helping you select the equipment for your radio station.
  3. Equipment For Studio: Low on the budget? No worries. Look for used equipment. A studio set up with consumer gear can cost something around $5,000 to set up which can go up to $100,000 if you want a high-end studio. It is recommended to use consumer gear; you can always upgrade to pro-gear when the profits start rolling in.
  4. Transmission Equipment: You can get an antenna, a transmitter and other related stuff between $4,500 and $12,000. A transmitter is only helpful when FCC grants you the Construction Permit so you can broadcast live so this can wait a bit.
  5. Utilities And Rent: Look for a room or an ample space in a public center, TV stations, etc. so you can market yourself quickly and get subscribers easily. Some places don’t allow antennas to be placed on the roof so you might have to rent additional space for it. Electricity, phone and internet bills are in addition to the recurring budget.
  6. Man Power: To keep the station running smoothly, you may need to hire a few full time or part-time personnel. However, you can cut the cost by recruiting a few volunteers. Tasks that need to be overlooked by full-time professionals include finances, fundraising, and training.
  7. Content Licensing:  Any licensed content that you play needs to be paid for. Performance Rights Organizations (PROs) are in charge of handling this as they then pass on the generated money to artists and composers. Usually, PRO charges $600/year, which is reasonable to come to think of it. However, if you stream your programs on the internet, you will have to pay additional fees. Make sure you go through the music licensing guide which readily available on the internet to avoid running into any issues.


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