What is the scarcity rationale? Does the Internet, with its plethora of music and video entertainment, render the scarcity rationale moot?

What is the scarcity rationale? Does the Internet, with its plethora of music and video entertainment, render the scarcity rationale moot? In other words, when the scarcity rationale was first developed, broadcast outlets (and motion pictures) were the main sources audio/visual entertainment. Today, people can find all types of entertainment just a click away. Or is there a case to be made that broadcast is different because it is not a subscription service like cable or the Internet?