Earlshog
05-29-2009, 07:45 AM
From NYRMB
A credible group of posts on a satellite radio fanboard, apparently by an employee, states that XM and Sirius are planning to charge most subscribers an additional fee of $1.98 per month, starting July 29. This is to defray their expenses for the extensive music royalty payments they are required to make to music companies.
The posts indicate that while the F.C.C. has mandated that the basic $12.95/month fee for satellite radio cannot be raised for over two more years, the merger agreement does allow them to pass along their music royalty costs to subscribers.
Their is some controversy whether the royalty fees XM and Sirius actually pay are really anywhere near $2 per subscriber.
My guess is that while some subscribers will cancel if/when this fee is implemented, enough will stay and pay this to bring in much needed revenue to Sirius XM.
A credible group of posts on a satellite radio fanboard, apparently by an employee, states that XM and Sirius are planning to charge most subscribers an additional fee of $1.98 per month, starting July 29. This is to defray their expenses for the extensive music royalty payments they are required to make to music companies.
The posts indicate that while the F.C.C. has mandated that the basic $12.95/month fee for satellite radio cannot be raised for over two more years, the merger agreement does allow them to pass along their music royalty costs to subscribers.
Their is some controversy whether the royalty fees XM and Sirius actually pay are really anywhere near $2 per subscriber.
My guess is that while some subscribers will cancel if/when this fee is implemented, enough will stay and pay this to bring in much needed revenue to Sirius XM.