Can someone in the UK tell us how this makes sense? Is this because the radio station is funded by a listener's tax, and they don't know if the customers have paid the listener's tax, or something? Here in the US, a radio station is happy to have their signal on speaker nearly anywhere, as that means the listeners are hearing the radio ads and they can charge more for their advertising time that way. That's what pays for the music. There must be some different legal principle at work here, but I have no idea what it would be.
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