Napster for Radio?

The first I heard of the issue of digital rights and royalties for Internet radio was this article from internetnews.com.

A lot of it went over my head. I've gotten pretty knowledgeable about written work rights in the last couple of years for obvious reasons, but music and movie rights issues go right over my head.

This article reminded me a lot of the whole Napster-Metallica (and others, I just like picking on Lars Ulrich) debacle, but seems to be lower key. I didn't know streaming audio webcasters had to pay royalties.

Does that mean regular radio stations have to, too? I always thought it was the artists pleading to the stations to play their work (think That Thing You Do or DreamGirls), not expecting to paid when their music is played.