[Infowarrior] - SiriusXM raising rates

[Richard Forno]

Sorry, maybe I'm being paranoid but I don't buy this 15% increase to  
our rates as royalty-only.   Plus given my current feelings for XM's  
quality over the past year  I am severely tempted to let it expire  
when it comes up for renewal soon.   -rf



Price Increase: Sirius XM to pass Music Royalty Fees to consumers
By Ryan Saghir on June 3, 2009 5:14 AM | 160 Comments

Sirius XM RadioSatellite radio subscribers will be seeing their  
subscription price grow by nearly $2 a month thanks to increased music  
royalty rates, according to leaked internal company document.

Orbitcast has confirmed the U.S. music royalty rates will be passed  
along to subscribers with multiple sources familiar with the matter.

According to the leaked information, the royalty cost increase will  
take effect on July 29, 2009. Sirius XM Radio Inc. does not appear to  
be characterizing this as a rate increase, as the subscription rates  
"officially" charged by the company will remain the same - but  
subscribers will end up paying more, nonetheless.

In late 2007, the Copyright Royalty Board made a decision to increase  
the royalty payments for "performance fees" for playing music on  
satellite radio. The license rate of 6.0% of gross revenue was applied  
for 2007 and 2008 - it was then increased to 6.5% for 2009 and will  
continue to increase to 7.0% for 2010, 7.5% for 2011 and 8.0% for 2012.

"Unfortunately we can no longer absorb these increased costs," the  
company stated in the leaked Sirius XM customer service script.

< - >

http://www.orbitcast.com/archives/price-increase-sirius-xm-to-pass-music-royalty-fees-to-consumers.html