Rather than the fully-automated webcasts that we do, They have a multi-operator video crew shooting the show, and then do offline editing of the footage before posting it (which is a huge amount of work). They appear to be getting label permission for each shoot, which means they can often leave it up forever. And they're giving it all away for free, on their web site and the iTunes store.
The question that their FAQ doesn't answer is, "how the hell are you paying for this?" There aren't even ads on the site, just a logo for their ISP.
But this interview with Justin Kniest, the CEO has the answer: the Dutch department of Education, Culture and Science and the city of Amsterdam are footing the bill. Wikipedia says that Paradiso is a "publicly-subsidized youth entertainment center", and that the city of Amsterdam owns 25% of Fabchannel (at a cost of 1.25 million Euros).
Free government money! This is in somewhat stark contrast to my governmental experiences of late. Meanwhile, I'm scrounging eBay looking for some cheap replacement camcorders, just to keep our webcasts at the shitty 1998 level of technology you've come to expect.