It's Official: Sirius XM Passing Royalty Fees On To Subscribers
June 16, 2009

Earlier this month, it was reported that Sirius XM Radio would be adding new fees to its subscription prices, as a way to pass along increases in satellite radio royalty fees to the consumer. Now the satcaster has confirmed this news, in an letter to its subscribers.

The letter, signed by Sirius XM Chief Service Officer Joe Zarella, reads as follows:

"Thank you for being an XM subscriber. We are dedicated to providing our subscribers with the best programming and listener experience available on radio today. As part of this commitment, we have an important update regarding your XM subscription.

Music royalty rights were established by the U.S. Congress as part of the Copyright Act. This Act requires payment of copyright music royalties to recording artists, musicians and recording companies who hold copyrights in sound recordings.

These royalties have recently increased dramatically, principally as a result of a decision made by the Copyright Royalty Board, which is designated by the Library of Congress to set royalty rates for sound recordings. Beginning on July 29, 2009, a 'U.S. Music Royalty Fee' of $1.98/month* for primary subscriptions and $.97/month* for multi-receiver subscriptions will be effective upon your next renewal. This fee will be used directly to offset increased payments from XM to the recording industry.

Unfortunately, we cannot control the Copyright Royalty Board's rate increase, but we can offer you ways to save on your subscription. The longer your subscription, the more you save!"

As a reaction to the additional fees, Sirius XM is offering a free month for subscribers who sign up for one year, with five free months for a two year deal and nine free months for a three year subscription.

Orbitcast reported earlier this month that Sirius XM "can no longer absorb these increased costs" in performance royalties. In 2007, the Copyright Royalty Board instituted increased performance royalty rates for satellite radio, which have gone up every year and will continue to increase into 2012. The rate increased from six percent of gross revenue in '07 and '08 to 6.5 percent this year. It will reach seven percent in 2010, 7.5 percent in 2011 and eight percent in 2012.

As part of the Sirius and XM merger, the FCC allowed the combined satcaster to pass along the royalty fees, effective July 29, 2009, whereas the company was required to absorb the fees itself before this date.




 
Breaking News
iHeartMedia Oklahoma City Names JJ Ryan PD For KJYO & KXXY
Entercom Names Richard J. Schmaeling EVP & CFO
Doug Gottlieb Joins FOX Sports Radio & FS1
March 21, 2017
Beasley Broadcast Group Reports 4th Quarter and Full Year 2016 Results
Chip Arledge Appointed OM For Cumulus Media Shreveport/Bossier City, LA
KXQQ/Las Vegas Names Natalia Hernandez As New Midday Personality
In Brief - March 21, 2017
March 17, 2017
Cumulus Reports Results for Fourth Quarter and Full Year 2016
Entercom Austin To Move 96.3 FM RnB To 95.9 FM
March 16, 2017
iHeartMedia Names Geoff "G-Off" Owens PD For KXJM/Portland & KUBE/Seattle-Tacoma
c3 & FMC Statement: Elimination of the NEA, NEH, and CPB Indefensible, Shameful, and Senseless
iHeartMedia Introduces SmartAudio
Condé Nast Acquires Pop2Life And Ribyt
March 15, 2017
Radio One Houston Names DJ Riddler MD & On-Air Talent/Mixer For KROI (92.1 Radio Now)
iHeartMedia Names Mark Fuhrman Area President in Pittsburgh/West Virginia Region
REAL 103.9/Las Vegas Names Roxy Romeo APD/MD
iHeartMedia Washington, D.C. Debuts Cherry Blossom Radio
KBEB/Sacramento Names Bryan "B-Dub" Washington PD
iHeartMedia Portland Debuts The New 103.7 The Legend
March 14, 2017
The iHeartRadio Music Festival Returns to Vegas This September
KMGA (99.5 Magic FM) Adds Bryan Simmons as PD/PM Drive, Doug Durocher as AM Co-Host
Veteran Music Exec and Producer Tommy LiPuma Passes Away
Magic 92.5 Turns 20 With An All-Star Birthday Bash
March 13, 2017
Alpha Media Portland Names Sean Demery PD At KINK FM
Music News
Chance the Rapper, The Killers, Muse & Arcade Fire Headlining Lollapalooza
QuickHits: Ed Sheeran, Chuck Berry, The Decemberists
QuickHits: NIN, Missy Elliot, Frank Ocean, Pitbull, Enrique Iglesias, Sublime
Rock Pioneer Chuck Berry Passes Away
The Entertainment World Remembers Chuck Berry
Ed Sheeran Spends Second Week Atop Billboard 200
QuickHits: Drake, James Blunt, Spoon, Bob Dylan
Quick Hits: Coldplay. BET Experience, Weezer
Quick Hits: The Chainsmokers, Pitbull, Ohana Music Festival, Arroyo Seco Weekend, Feist
Ed Sheeran Earns Biggest Debut Week of 2017
Quick Hits: Drake, Pearl Jam, Fifth Harmony
Lorde's Melodrama Arrives June 16
U2 Announce 30th Anniversary Joshua Tree Box Set
Ed Sheeran Announces Massive North American Tour
Quick Hits: Halsey, Charli XCX
FMQB NOW

Sam Milkman, EVP
Coleman Insights

Advertisement:
Search FMQB.com
Advertisements:
FMQB Member Login
Email:
Pass:

Save
Not a member yet?
Sign up Now!
Sign Up for Breaking News!
Enter FMQB E-Tracking!