Remember, copyright exists for the public good. Would radio still exist if it paid significantly more than current internet prices instead of less? Would that be preferable to the current situation?
I don't necessarily doubt it is more effective for certain things, like local events (although Pandora could move that direction I suppose). I'm just wondering why radio would be so much more effective. Is it because they have so many more ads per hour of play, and radio "personalities" to shill local stuff?