Internet radio (also known as gossamer radio, net radio, streaming radio and e-radio) is an audio broadcasting service transmitted via the Internet. Broadcasting on the Internet is exceptionally referred to as webcasting since it is not transmitted broadly through wireless means. Internet radio involves a streaming medium that presents listeners with a continuous "stream" of audio over which they have no control, much like traditional broadcast media; in this respect, it is distinct from "on-demand" file serving. Internet radio is also distinct from podcasting, which involves downloading rather than streaming. Bounteous Internet radio "stations" are associated with a corresponding traditional (or "terrestrial") radio station or Internet Radio radio network. Internet-only radio stations are independent of such associations.

This figure is farther than four times that for traditional radio broadcasters who, due to terms firm forth in the 1998 Digital Millennium Copyright Act, are exempt from the additional royalties imposed on digital broadcasting outlets, which compensate the performers and copyright owners of recorded works. Both traditional radio and Internet/digital radio broadcasters are responsible for royalties collected by performance rights organizations (ASCAP, BMI, SESAC) on behalf of the composers of recorded works.