How about creating a radio device that works over the cell network?
The cost of data on the cell network would be covered by "radio" advertisements. But the device would of course have extensive caching of audio on the device. Now you have a whole new band of "radio" and can show off those talented musicians.
I'm afraid this is highly unlikely, and there are multiple reasons. Firstly, mobile operators are gatekeepers in the space, and they want to profit on any value-added service. Secondly, take a look at mobile TV[1], which is a solved problem from the technical point of view, but still didn't get enough traction.
Instead of grafting an old idea to a different platform ("faster horse"), make something that works in the world where mobile operators are just dumb pipes providing access to the internet.
Internet radio has really taken over this space. Mostly because you can access it from so many devices.
Remember the XM radio portable devices? They have since stopped making them. It makes sense. I can listen to XM on my phone or laptop and I don't have to worry about signal issues.
They may be selling them, but I don't think a lot of people are still using them.
Most people that I know that had any of these devices (including me, mines in my closet somewhere), have stopped using them. Not to mention the fact that the merger between XM and sirius messed up many of the channels and functionality.
The cost of data on the cell network would be covered by "radio" advertisements. But the device would of course have extensive caching of audio on the device. Now you have a whole new band of "radio" and can show off those talented musicians.