They owner of the service that provides the media (songs) has signed agreements with the big 5 record companies (EMI Music Distribution, Sony Music Entertainment, Warner Elektra Atlantic Corp., UNI Distribution Corp., and Bertelsmann Music Group, *I think*)
This agreement allows him to provide broadcasting (downloading) for a flat rate annually.
I believe most radio stations have similar licenses that allow them to broadcast copyrighted material, though it's my understanding they don't pay for them, and are in fact usually paid by the recording industry to play the filth that makes your ears bleed. They do not, however, own the rights to the copyright, as would be the case in a sporting event with the network and the league.
Of course, I'm not a copyright attorney so what the fuck do I know?
-sol
"They get mad, I don't give a fuck." -- Too $hort
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