What happens to the royalty fees paid? The major record companies take your money, keep most of it for themselves, their lawyers, marketing teams, and then divide the rest statistically based on the Billboard charts. That means that no matter what kind of obscure, underground music was played, most of the extortion money paid goes to whichever management company owns Justin Timberlake, or whatever the top 40 flavor of the month is. All other artists, including most of the ones whose music is actually played on stations like Radio Paradise, get nothing. Corporate America sticking it to you even if you don't listen to mainstream commercial radio.
That's not precisely correct in the details, but it's basically true. Just because we play Artist X, and we pay royalties to SoundExchange (the royalty collection arm of the RIAA) does NOT mean that Artist X is going to see their fair share of what we've paid, or - indeed - anything at all..
Radio Paradise Forum - eclectic online rock radio discussion
(you might have to go to page 2 or something...)