If you go to http://www.savethestreams.org/ you can read the whole story plus what you can do to protest against recent developments.
I know many UK terrestrial radio stations also streaming on the Net have limited Net listeners to those in the UK in an attempt to avoid these royalties but those tend to be commercial enterprises. The real casualty will be the small, specialised stations.
I can see both sides of the argument but suspect that so often, fees are going to be swallowed up with very little getting to the artist.

Eddie