As long as you are not hosting the music ( by storing them ) on the servers, you can run an internet radio station.
Although, I would like to point out, that it may be a bit more $ to do, but doing a station legally may keep you from getting in serious trouble in the future ( check out loudcity.com for legal broadcasting choices )
I am not sure how one would go through setting up an online station, but hopefully someone with that experience will respond to ya.