CRB Sets New Royalty Rates for Satellite Radio Performance Fees
December 4, 2007 at 12:42 PM (PT)
The COPYRIGHT ROYALTY BOARD (CRB) issued its determination and order setting the royalty rate payable by XM SATELLITE RADIO under the statutory license covering the performance of sound recordings over the XM system for the six-year period starting JANUARY 1st, 2007 and ending DECEMBER 31st, 2012.
Under the terms of the CRB Satellite Radio Services, XM will pay a performance license rate of 6.0% of those gross revenues subject to the fees for 2007 and 2008, 6.5% for 2009, 7.0% for 2010, 7.5% for 2011 and 8.0% for 2012.
"Today's ruling by the COPYRIGHT ROYALTY BOARD brings to an end a year-long proceeding with the record labels and provides our company certainty regarding music performance royalties to be paid through 2012," said XM Chairman GARY PARSONS. "Moreover, the music performance fees set by the CRB are in the range projected by many financial analysts who cover this industry. XM remains strongly committed to providing consumers the very best in both music and non-music programming, to compensating artists for their creative work, and to providing our shareholders a fair return on the multi-billion dollar investment in this new audio entertainment platform."