It is a different royalty than publishing royalty which is BMI/ASCAP and those monies are sent directly to the label and they decide how to dole it out.
FYI terrestrial radio pay's 0% of revenue for performance royalties, Satellite Radio pays about 8% of revenue and Pandora pays around 50%
This unfair system of royalty payments were set up by the RIAA mafia in the mid 90's to discourage Internet radio since it would be a direct competitor to the old guard.
That is why there is current legislation introduced 4 weeks ago to bring parity to the royalty system. Why should a song that is played on FM radio pay a different set of royalties than one played on Satellite or one streamed on the Internet?
I personally have received several checks from internet streaming, for some big hit songs I played on as a session musician, yet those same songs, which were played tens of millions of times on terrestrial radio, paid me NOTHING, because terrestrial radio does not pay performance royalties.