Satellite pays performance royalties.
The fact the terrestrial is listen by more people is actually a plus for the artist, I think (more happy listener = more potential CD buyers)
I think you're screwing up your logic here. While I will agree that more listeners per royalty means more CD purchases, think through the implications of that. It means that the best situation for CD purchases is one with minimum royalties, in fact it's a situation with negative royalties causing large play counts. Also known as payola. Which means your original argument about royalty payments is disproved...
