The deadline has past, but Internet radio is still on. Maybe it will stay that way for a little while longer.
Negotiations are still rolling since SoundExchange, which is the overseer of recording industry royalty fees, agreed to continue searching for new rates. The biggest issue, it seems, is coming to a suitable compromise between large and small webcasters. It appears that some of the major players, like Time Warner and Yahoo! will have to pay the royalties, just like everyone else.
Whether or not it plays out that way, it is definitely too early to tell. At the very least, there is a hope a deal can be reached in the near future. This means that the music may continue to play yet another day.