Doc Searls sums up what's wrong with the CARP royalties for Internet radio in Electrolite's discussion area:
Regular radio pays fees to ASCAP and BMI that go to composers, not to performers. And they are based on a station's revenues, not on a per-play/per-listener basis.
There is little or no copyright burden on ordinary radio. You pay nothing for what you hear on your city's KISS-FM station, and that station pays nothing except to composers. Generally they get the records for free ("for promotional puposes only" it says on the CD) from the record companies, or for a fee from some other service.
There is no equivalent between the burden placed on regular radio by current regulations and that placed on Internet radio by the CARP/LOC regulations. The burden on Internet radio — in fees, in reporting, in every other respect, is stuff NEVER experienced by ordinary radio. If somebody ever even thought of bringing them up in Congress, the NAB and its legislative tools would squash it like a bug.