If this catches on there won't be many over the air radio stations

In some very real sense I view this as theft. The way people pay for "free" radio is to listen to the ads (see Freedomnomics for a history of this). As prices fall, presumably this device will become more common.

Myine Electronics' Abbee radio strips out ads and DJ chatter

By Edward C. Baig, USA TODAY
You adore listening to tunes on the radio. You just don't adore the lame commercials and blathering DJ chatter that accompanies the music. The $250 Abbee Commercial-Free Music System that I've been testing aims to solve this age-old predicament. The product, from Michigan start-up Myine Electronics, consists of two main components: a tabletop base stereo speaker system with a built-in FM tuner and a portable player called Music Lock, which plugs into the base. The twist: Abbee can automatically record songs from whichever FM station you're tuned to — but it manages to do so without the ads and idle chitchat. . . .

For the most part, Abbee works as promised. On only one song —The Young Rascals' Good Lovin' — did I hear a DJ who yammered well into the start of the selection. On a couple of other tracks, I heard a single word (e.g., "Supremes") from a DJ. The music sounded fine at the digital audio broadcast quality of 192 kilobits per second, though there were slight variations in volume on some tunes. I listened through the supplied earbuds and my car stereo (an auxiliary cable is included).

Still, there are drawbacks. On some songs, eliminating the DJ also means clipping the beginning or end of a track, just enough in a few instances to be bothersome. . . .