XM/Sirius subscription fees are increasing...
 15 years
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...or should I say "having additional fees added to them."
I didn't see this mentioned elsewhere in the forums here, so forgive me if this is a repeat.
Thus spake XM/Sirius:
"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."
See http://www.xmradio.com/about/musicroyalty.xmc for more details.
Yup
Got my notice yesterday. Two bucks a month... Everything is going up (except my income), but I'll keep XM. Love the fact that no matter where I go in the country, I can still listen to my favorite stations!
My 2 cents........ Joel
"Sometimes, when I look at my children, I wish I had remained a virgin". Lillian Carter (Mother of Jimmy Carter)
Hmm I wonder if that will
Hmm I wonder if that will just affect you if you are on a month to month plan since I pay for a year in advance...
Annual Rate
Hmm I wonder if that will just affect you if you are on a month to month plan since I pay for a year in advance...
Will go up about $24...
*Keith* MacBook Pro *wifi iPad(2012) w/BadElf GPS & iPhone6 + Navigon*
?
Hmm I wonder if that will just affect you if you are on a month to month plan since I pay for a year in advance...
I know that it will at the end of your subscription plan, but if you didn't get a notice, then you should be okay (until the year is up). I pay quarterly, and got the notice.
Joel
"Sometimes, when I look at my children, I wish I had remained a virgin". Lillian Carter (Mother of Jimmy Carter)
You will pay eventually...
Hmm I wonder if that will just affect you if you are on a month to month plan since I pay for a year in advance...
Per the linked FAQ page:
For plans renewing after July 28, 2009, the fee will be automatically added to your next bill. There will be no change to your current plan and that plan will remain in effect without change until your next renewal date.
When you get your next renewal (assuming it is after July 28) the fee will be added to your subscription price.
The Moose Is Loose! nuvi 760
GO Figure
Of course royalties fees have to go up! The cost of jet fule for their private jets has to be killing these multi millionaires!
Sirius Radio\XM is worth every dime to me I spend most of my life in the darn car! So an extra $24.00 a year it is!
Life is not a journey to the grave with the intention of arriving in a pretty, pristine body but rather to come sliding in sideways, all used up and exclaiming, "Wow, what a ride!" -------- Nuvi 755T and 1350T Jensen NVX225 WorldNavigator PDA based GPS
First the MD EZPass monthly fee, now this...
I won't have to pay until my renewal in November, but this is a kick in the pants! This is in addition to the fee ($2.99?) for listening online (which I'll also have to start paying when I renew).
-Dave
Just keep chipping away.
Well, since Sirius/XM can't seem to make money anyway, maybe this will keep them in business a little longer.
TomTom built in and Garmin Nuvi 1490T. Eastern Iowa, formerly Southern California "You can check out any time you like...but you can never leave."
It's Still Worth It
I can't see going back to terrestrial radio after a few years of uncensored radio. I certainly don't miss all those commercials.
Garmin nüvi 765T, nüvi 350
Catch 22
SXM is taking advantage of a clause in their merger deal with the FCC. They are allowed to raise rates in the next few years *only* for something like this that is out of their control. They do have to pay royalties for music played, and they do owe them, if I recall correctly, going back to 2007. The $2 a month they are charging will enable them to catch up on the back amount owed. But they're not allowed to make a profit on new fees like this under their deal with the FCC. Once they've caught up, there will be legal challenges if they don't lower this fee because the $2 a month is a lot higher than what they have to pay for royalties.
You can avoid the $2 a month royalty fee if you take out a multi-year or lifetime subscription prior to the date in July when they start imposing this fee on all new or renewing subscriptions. But multi-year and lifetime subscriptions with SXM is still risky, in my opinion, because of the danger of them going out of business or changing their business model (to do something different, like running ads, or changing their playlists to the point where you don't want to be a subscriber any more) before you can recoup the savings by going long-term.
JMoo On
I got the
same notice in my e-mail. They just raised their rates a couple or three months ago, and now they are adding this fee. Since I am on the road alot, and going into areas where the only terrestrial radio is mostly in Spanish, I'll pay the extra couple of bucks. But I don't like it!
Not doing anything worth a darn.
I pay monthly.
for Serius and I haven't received any notice about this. Is it possible that it only on XM suscribers.
Fat cats, not artists, benefit
These royalty fees mostly go to make the fat cats sitting in their Hollywood offices fatter. The artist sees little if any of it.
That makes this scam all the more galling. I'll happily pay a cover charge to get into a bar to see and hear a band play and gather up that whole experience, or a concert for that matter. That's where artists make their money.
But paying some Nazi outfit that uses strongarm tactics to keep its antiquated business model afloat? No thanks.
Besides, I only listen to baseball on my XM. If they had a baseball-only plan I would switch to it and tell these money-grabbers to take a hike and get a real job.
Profit for SIRI
The funny thing is by contract SIRI pays 6.5% of gross revenues as Royalty Fees in 2009. It goes up every year until 2012 where it is 8.0%. Even at 10%, a $13 dollar a month subscription yields $1.30, Where does the extra money go?
Past due
The funny thing is by contract SIRI pays 6.5% of gross revenues as Royalty Fees in 2009. It goes up every year until 2012 where it is 8.0%. Even at 10%, a $13 dollar a month subscription yields $1.30, Where does the extra money go?
As I said in my post above, SXM says they have to pay royalties going back to 2007 (I think). They owe it for past years, though, that's the point, so they charge more than their actual current monthly costs so they can cover the back payments. The FCC deal does allow them to back-charge like this. But once SXM "catches up" on the back amount owed, if they continue to charge more than they are paying in royalties, you can count on legal activity by subscribers to curb the fees back to SXM's actual costs. You can probably also count on SXM testing this by leaving the fees at profitable levels even after they've paid off the past amount due.
Likely outcome: if the FCC doesn't take action, there will be a class action suit. Some law firm will rake in a few hundred thousand. Subscribers will get a coupon for $10 off a 2-year old radio that nobody wants.
JMoo On
Baseball only? Maybe no fee
These royalty fees mostly go to make the fat cats sitting in their Hollywood offices fatter. The artist sees little if any of it.
That makes this scam all the more galling. I'll happily pay a cover charge to get into a bar to see and hear a band play and gather up that whole experience, or a concert for that matter. That's where artists make their money.
But paying some Nazi outfit that uses strongarm tactics to keep its antiquated business model afloat? No thanks.
Besides, I only listen to baseball on my XM. If they had a baseball-only plan I would switch to it and tell these money-grabbers to take a hike and get a real job.
Absolutely. I agree 100%. If composers and musicians get the money, that's cool with me. Paying the RIAA bullies is not cool with me.
If you have a sports/talk package only, so far, SXM has issued conflicting information on whether or not your package will be subject to the $2 a month fee. Their most recent email or press release on the subject said sports/talk only would not be charged the $2 a month for music royalties. Logic says you would not have to pay music royalties on a sports/talk only package, but since when has logic applied to the Wonderful World of Mass Media??
But if you are paying for music channels and truly only want baseball on SXM, you should downgrade your package to have a chance to avoid this $2 a month fee, and then squeal like a stuck pig if they charge you for it anyway, starting with the FCC.
JMoo On
Both Sirius, and XM
for Serius and I haven't received any notice about this. Is it possible that it only on XM suscribers.
No. It applies to Sirius XM-- both Sirius and XM. However, if you have only a sports/talk package-- no music channels-- you may not have to pay, as I explained above. If you are a lifetime subscriber before the fee takes effect, you do not have to pay. If you subscribe to music channels, whether online only, satellite broadcast or combination, you will be billed at least a $2 a month royalty fee beginning with your next renewal date. Multiple subscriptions on the same account get a partial break for the additional subscriptions.
Don't count on the fact that you haven't gotten email or mail notice as getting you off the hook. The company has long been very erratic in getting notices about stuff like this out. Some subscribers get notified. Other subscribers do not. The policy will apply to you the same whether or not you are notified.
JMoo On
Tighten belt
Mark - Nuvi 265T NUVI 50LM