Companies that want to play or stream music on the Internet are legally obliged to pay royalties to the artist according to the Copyright,Designs and Patents Act of 1988. The radio service Pandora ended its UK stream at the beginning of 2008. In March 2009 YouTube announced that it was removing all music videos to UK users after they could not reach a new licensing agreement with the PRS.
Information from: http://news.bbc.co.uk/1/hi/technology/8068154.stm
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