Now your talking! The trick (that 98%) doesn't get is doing something that isnt re-inventing the wheel. No one wants to hear a rotary playlist. AOL music was doing that 15 years ago, and where did they end up.
Everyone blows Pandora up to be huge, but due to royalty's for all the individual licensing, they still haven't turned a decent dime. Not after all these years of running. Spotify has now reached a royalty agreement, and they are going to be feeling the axe soon.
1% comes of with enough attention to make it happen, the other 1% has a great idea, but like a lot of good businesses, fails to take off.
But "good" money? It all depends on the value of advertizing and attention. Their is a SLEW of undercutting among all the industrys right now. Swyft is a great example of how a smart person can undercut taxi drivers. Ffiver has been getting a lot of attention for stations trying to get $5 for advertizing. Good, but untrained VO artist have been making decent profits there. Not to mention the oddball of advertizing that could be had.
Community share projects have been coming alive, ect. ect. ect. The best bet for small internet stations is to fight battles locally or on a specific level.
When I first started streaming, I had this station taking off. Had a great live show. It was called "dead awaken radio" and was a redux of "Mars Attacks" Wells style. Basically it was music to a storyline of a zombie apocalypse, but all whacked out. Like taking a "Heavy metal" comic, and making something audio with a crazy soundtrack.
Problem was, I wanted to be more "professional". Got the licenses, got the automation, so we were running 24/7. Got the programs running. Got everything going, but then it went from a project with friends, to a project I was spearheading to be like a legit station. Got the audio perfect, and it wasn't fun anymore to the listeners. I had more tune ins on my 24kbps stream then I'd like to admit (it was MP3 too lol)
But yeah, moral of the story, FUN, and interactive above all. 1000 stations get the audio right, but I would give 1000 tune-ins up for 20 repeat listeners that really enjoy the station experience. Those are the kind that will pitch in for donations, that will interact on forums, and they will tell friends.