The problem with the Nielsen numbers is they don't show Sirius, Spotify, Apple, and all the various non broadcast streaming services. So it's based on a false reality. If you were to insert those other sources, you'd see a very different picture. If you look at Cleveland, the most popular broadcast stations are those that target older listeners. That should be an indication for the demographics of broadcast radio. In the case of WCSB, it's a station that is paid for primarily by a university and a student activity fee. We know that usage of broadcast radio by people in their 20s is very low. So if I'm a college student who wants to reach people my age, the use of FM is probably not the first choice.
I'm not sure what you're referring to here. The costs for everything are rising. If you're talking about music royalties, they are negotiated for both broadcasting and digital, and consequently, they are rising in both places. Let me remind you of this story from August:
I'm referring to the idea (taught in both economic and accounting classes) of fixed costs versus variable costs. Fixed costs are the costs you have to pay no matter how many people listen. Over-the-air stations have a lot of these including the startup costs of getting a transmitter and getting a license, among other things. It doesn't matter how many listeners you have, your cost as a radio station will stay the same.
Variable costs, on the other hand, are the costs you have to pay for listeners to listen to your station. While they are the same per listener, they increase to the station for each additional person who listens. Over-the-air radio stations do not have these costs, but webcasters (and Internet simulcasters) do. The charge per song per listener is an example of a variable cost and that is what SoundExchange charges you to stream the songs within its purview.