It appears that the olive branch that was offered by SoundExchange contained a hornet’s nest.It comes with a requirement that they use DRM (digital rights management)

Along with the myriad of software issues, particularly across operating systems, that come a DRM scheme, it also reflects a fundamental misunderstanding of the nature of Internet radio.

If people want to store songs on disk, the go with P2P solutions. They tune into Internet radio because they want to listen, not rip.