Sirius XM Passes Royalty Fees On To Subscribers
June 16, 2009 at 2:57 PM (PT)
As first tipped two weeks ago (NET NEWS, 5/29), SIRIUS XM Radio is passing along increases in satellite radio royalty fees by raising fees on its subscription prices. SIRIUS XM Chief Service Officer JOE ZARELLA sent the following letter:
... 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. ... These royalties have recently increased dramatically, principally as a result of a decision made by the Copyright Royalty Board ... Beginning on JULY 29th, 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. ... 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.