I've been curious about this... do cafe/restaurants play a type of commercial satellite or digital radio intended to be played in stores? Or do they license the music themselves?
Those publishing organizations. If you're not a songwriter and/or don't own at least part of your publishing, you don't get royalties that way. A lot of major label artists don't write their own songs and it's not just the pop/r&b singers. A lot of rock bands hire songwriters as well. Overall, the entire industry is shady and the majors are grasping for the last bit of CD revenue that they can find.
You're going to see a lot more 360 deals like the one Jay-Z just did, although they'll be doing them for much smaller amounts from much smaller artists and they will be TERRIBLE deals for the artists. Jay-Z got so much because he has the power, influence, and track record to justify it. The majors want to own the entire vertical but won't create any sort of deal that is going to be fair for new projects.
pandora pays royalties to soundexchange, the same way internet radio does. they in theory pay artists. although, i'd be interested in hearing how many artists actually get paid by sx and how much.
