From what I read (and I did read a fair bit at the time!) it costs to run a station regardless of whether you made a profit or not. There was a company offering to deal with & pay the licencing to webcast, but their starter package was like 50 per month for 10 simultaneous streams, 90 for 20 streams.. Very steep ! Also extra for bandwidth, cos they expected only the equivalent of 20% of streams to be active all the time.
Things seem to have moved on a bit but apparently it's still pretty complex if you're not a registered company. According to that blog there's a very interesting line in the licencing agreement Please note that in addition to MCPS and PRS licences, you will also require licences from the relevant record company or other copyright owner for the use of the sound recording", so what exactly is being licenced here ??!! I think you're also limited to 128kps cos they're scared of losing CD sales because of streamrippers..
If you have any interesting info, please post up the links !