Kent said:
...They said they couldn't monetize it...
This too ^^^^^
I think it's really simple. We are in the RADIO business, which modulates the aether using a transmitter and a whole lotta other very expensive gear. So you can throw together a fairly decent streaming setup for far less than it would take to do traditional radio, but modulating the aether, while less profitable of late, still brings in a far greater return than streaming online.
Streaming is an entertainment win for the listener, but it's a financial loss for the broadcaster.
Which of those will win?
Those "minimal costs" to stream really aren't so minimal, especially when you factor in the royalties you must pay and the added regulatory hoops you have to jump through for making such content available online.
I don't know of any stations making any "significant" revenue from streaming online.
I'd very much like to know of any who are, and if they do exist, I'd bet they were in major markets where web penetration is pretty high. But I suspect that is certainly not the case for the majority of broadcast stations outside of the big cities. San Angelo in particular.
The DCMA essentially killed broadcast streaming in the late 90s, just when it was starting to take off. Now, after a few major court battles that broadcasters have largely lost, things aren't much better. Yes, stations are streaming again, mainly as a gesture to secure whatever "ground" they can on the Web, but the RIAA is slowly killing those now.
And in the current poor economy, more and more stations are seeing it easy to pull the plug on something that doesn't even pay for itself, even under the best circumstances.