Music Royalty Fees

MichaelC

Member
Oct 14, 2008
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I see over at XMFan that's there's a post up from someone supposedly with XM saying SiriusXM is going to start charging a Music Royalty Fee, starting July 29th, the one year anniversary of merger approval.

It says $1.98 will be added each month on $12.95 subscriptions, making them $14.93/month. Multiple radios will be charged an additional .97 per month.

I'm not sure how they came up with $1.98, though. SiriusXM's music royalty fees are going up .5% from 6.0% to 6.5%. However, .5% on $12.95 is only .06....so not sure where they're coming up with the other $1.92 to make it $1.98.

They're allowed to do this. Even though they agreed to a 3-year price freeze....the base rate is staying the same. But they were allowed to pass on any increases in music royalty fees, which is what the rate increase would be for.
 
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semipenguin

Cheeseburger Connoisseur
Oct 11, 2008
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Good way to kill a company...:shock:

I'm glad I have two lifetime subscriptions...:)
 

MichaelC

Member
Oct 14, 2008
98
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I edited my original post. They were already being charged 6%....and it's going up to 6.5%, so it's a 0.5% increase for SiriusXM....so, .06 per month should be added onto $12.95/month subscriptions...not sure how they've come up with a $1.98 increase.
 

Jleimer

Active Member
Oct 30, 2008
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Maybe they want people to pay for their SAC's. Anyhow I see this move as another way to lose subscribers and bankrupt the company :mad:
 

semipenguin

Cheeseburger Connoisseur
Oct 11, 2008
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How does online radio get away with being nearly free (or free) and we have to pay an extra charge?...:scratch:
 

Jleimer

Active Member
Oct 30, 2008
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How does online radio get away with being nearly free (or free) and we have to pay an extra charge?...:scratch:

I dont know but it is a load of crap, now this will not cause me to drop Sirius, but if we have commericals on the music stations then I am finito.
 

IdRatherBeSkiing

Sherbert is NOT and NEVER WILL BE ice cream.
Oct 11, 2008
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They are allowed to do it by terms of the merger. Whether they will is another story. I wouldn't necessarly believe they will. It wouldn't make economic sense.

I also wouldn't count anything I read on XMFAN nowadays as fact. There are a lot of glasses are half empty people over there.
 

Jleimer

Active Member
Oct 30, 2008
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They are allowed to do it by terms of the merger. Whether they will is another story. I wouldn't necessarly believe they will. It wouldn't make economic sense.

I also wouldn't count anything I read on XMFAN nowadays as fact. There are a lot of glasses are half empty people over there.

Once it is on Orbitcast I will belive it but right now it is bullshit at its finest:bs:
 

sportboy

Member
Dec 18, 2008
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I can't imagine this being true. Sirius really can't be this stupid. If Sirius thinks they are losing subs now, put this in place and you will see a mad rush for the exit. After that, Mel can just put the closed for business sign on the door.

I know it might not effect the die-hards on this board but the vast majority of Sirius subs are not on this board.
 
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MichaelC

Member
Oct 14, 2008
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I'd still like to know if the $1.98 is true and, if it is true, how they arrived at $1.98/month on $12.95/month subscriptions.
 

Aaron

Moderator
Oct 10, 2008
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A $1.98 price increase would leave me no choice but to... spend $23.76 more per year. I'm too hooked on Sirius XM to leave it. Subscriber since 2004. :cool:
 

Jleimer

Active Member
Oct 30, 2008
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I do not know but maybe the 1.98 could mean that they play deeper playlists similiar to Slacker,but we all know Mel is a FM hack willing to bankrupt Sirius to get a seat at the NAB table but that is a different discussion for later.
 

itstrue

New Member
Oct 13, 2008
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According to the info in the thread, for multiple radio accounts the fee will be only 97 cents per month. I couldn't care less about such an insignificant amount. If I can't afford that, I shouldn't even have a computer, let alone satrad.
Anyone who quits over this was going to anyway.
 

Audio Snob

New Member
Nov 12, 2008
10
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1
More bandwidth please
Well I barely listen enough any more to justify the current monthly rate, so if they start tacking on a couple dollars more every month then I'll probably cancel after all. ESPECIALLY if it's royalty fees going to the RIAA, f*ck them!
 

MNXMFan

Member
Oct 24, 2008
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According to the info in the thread, for multiple radio accounts the fee will be only 97 cents per month. I couldn't care less about such an insignificant amount. If I can't afford that, I shouldn't even have a computer, let alone satrad.
Anyone who quits over this was going to anyway.

For me, its not JUST the $2, but the $2.99 before that, then the $3-5 from power, then the $3 from cable, then the $3 from Netflix, and the list goes on and on.

And this is the first year ever that pay did not increase at all for me. We are all making sacrafices during these hard times, and for a company like Sirius not to understand this (as a luxury service) is stupid.

And, to pass on a music royalty fee that is TWICE what they actually pay in royalties (actually, almost 3 times, but I digress) is absolutelly stupid. Everything is going up, but quality. And I guess I'm just tired of paying the increases. If this was simply a passthrough (as the FCC agreement REQUIRES btw) it might be a bit better (at about 6-10 cents, I'd pay that). But since I can get better music for free, and get most talk for free or less (audible), I would be an absolute MORON to sit back and continue paying 38% more today than what I paid a year ago prior to the merger.

Not to mention, we were ALL promised that this merger wouldn't result in increased costs, but it would result in cheaper programming options and a better selection. Lets see, since the merger:

1. No more XMRO free, at all, unless you pay $2.99
2. Best of Sirius $4
3. Music Royalty fee $2
4. Multiple radios $2 more

So, even for dual subscribers who used to pay $26 a month (which I wasn't one), you are now paying $22 a month. And for someone who was paying $12.95 a month, I am now paying $18 plus tax for RADIO, and getting FAR less out of it.

And yes, I realize that I pay far more for cable ($150 to be exact), but for that, I get many more hours of entertainment, plus Internet and Phone service. Do I get $20 of entertainment out of XM now? No way. Would I have gladly paid $25 three years ago for the same thing? You bet. But I can get better playlists elsewhere, and the one channel that I couldn't see myself living without (The Virus) isn't alone worth $20 a month.
 
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Tgajr

Member
Oct 11, 2008
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I agree. This will be a bad time for this. I dont understand why they havent dumped Oprah and Martha by now and added some better channels.
 

limegrass69

Confused
Oct 12, 2008
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The more important question is why do FM stations get away with not paying?

Don't worry. The RIAA is working on them right now. As you might expect, the NAB is up in arms about it. :eek:mfg:

The NAB obviously did not mind when Sirius and XM agreed to their extortion payments to the RIAA.