Sirius Xm Rates Going Up

[georgecdisc]

I currently don't pay for XM. In my old truck I had Sirius for about 1.5 years. New truck I went with the 3 month trial and never renewed subscription. Since the content of music on stations I like went downhill, I felt no need to pay money for it. I now use an MP3 player exclusively. To those who do pay for Sirius/XM, this might make you change your mind. Will you keep paying for XM? I already felt what I was paying was too much for listening to 5 (music) stations.

 

http://www.techdirt.com/articles/20090603/1211175111.shtml

 

Sirius XM Passing Music Royalty Rates On To Subscribers, Raising Lots Of Questions

from the disparity dept

 

Beginning at the end of July, Sirius XM satellite radio subscribers will see an extra charge of about $2 per month on their bill, as the company will begin passing along the music royalty rates it must pay to subscribers. We've written a lot about music royalties and licenses, particularly about how they serve to stifle the very innovation the music industry needs to survive, in favor of upfront demands for cash -- money which seems to have a hard time making its way to artists. This news from Sirius XM not only is likely to raise the hackles of its subscribers, but also raises some questions about the royalty system, and how it affects consumers.

 

First, the royalty rate for Sirius XM was set by the CRB at 6.5% of gross revenues for 2009, increasing by half a percent per year over the following three years. So why, then, is Sirius XM charging a $1.98 fee -- or 15.2% -- on its $12.95 monthly subscription fee? That seems like much more than "passing along" the royalty rate. As part of the governmental approval for the merger of Sirius and XM, certain conditions were placed on the company, including a three-year price freeze. The company has gotten around this before by separating out services, like online listening, that used to be included in the general subscription fee, then requiring an additional charge for them. Now it looks to be getting a boost by "recovering" a significantly higher percentage of its subscription fees than it must pay out in royalties. The FCC's merger conditions allow the company to pass the royalty fee on to consumers -- but why would they let the company pass on a fee almost three times as high as the actual royalty rate? Mobile phone companies have used similar "fees" to pad their revenues for some time, and the FCC apparently doesn't mind that, either.

 

Second, and perhaps more importantly, this situation highlights the disparity in how the music royalty rates are applied. Terrestrial radio broadcasters, unlike satellite broadcasters, don't have to pay musicians (or, rather, their labels) royalties. Satellite radio was presumably, an easier target for the likes of the RIAA, given its relative lack of lobbying strength, so the industry cartel defined it as an "interactive" service -- industry-speak for "pay us more money." It's hard to see how satellite radio is really any different than terrestrial radio, except for a different business model, albeit one with the same end, so it's also hard to understand why the two should be treated differently from a royalty perspective. The RIAA and its cronies have been working to change this -- by trying to force terrestrial broadcasters to pay up as well. They call radio "a kind of piracy", again ignoring the fact that radio, whether it's satellite or terrestrial, promotes their products. The National Association of Broadcasters, which represents traditional broadcasters, likely doesn't really mind the fact that Sirius XM has to pay royalties, given its well-documented disdain for the company. But by standing idly by while Sirius XM gets hit with the royalty mandate, it weakens its own argument against its members having to pay royalties. The equitable solution here isn't really to force terrestrial broadcasters to pay up, to level the proverbial playing field. It's to eliminate the royalties that are hamstringing new services and promoting music. Sooner or later, the industry will figure this out -- but at this point, it looks like that realization will come only after it's run itself into the ground.

[superjim]

I like XM pretty well.

I am paid up thru March of next year...but if things don't change a little bit...I will have to give it some thought before I renew again.

[impalasspeed96]

Fantastic news... Just when i was thinking about ordering it. Cause of course, by truck doesn't have an adapter to play the MP3. I mean why would a 40k dollar truck... ugh

[bigdogxx]

I like XM pretty well.

I am paid up thru March of next year...but if things don't change a little bit...I will have to give it some thought before I renew again.

 

Chances are they will be bankrupt before that time anyways! They barley have enough subscriptions to keep afloat as it is, not to mention having to chop the price sometimes more then 50% to keep customers from cancelling. To many million dollar contracts to dj's and talk show host they never needed.

[superjim]

Fantastic news... Just when i was thinking about ordering it. Cause of course, by truck doesn't have an adapter to play the MP3. I mean why would a 40k dollar truck... ugh

 

 

If you really do want XM...call them and tell them you got a postcard with the renewal code... "ZWINBACK" on it. You can get a year for only 77 bucks.

Less than 6.50 a month.

[ctahoe]

I like XM pretty well.

I am paid up thru March of next year...but if things don't change a little bit...I will have to give it some thought before I renew again.

 

Chances are they will be bankrupt before that time anyways! They barley have enough subscriptions to keep afloat as it is, not to mention having to chop the price sometimes more then 50% to keep customers from cancelling. To many million dollar contracts to dj's and talk show host they never needed.

 

 

bigdogxx,

 

You are so right about that. Without directv making a stupid investment (aka tax write off) in siriusxm a few months ago they would be gone by now. The billions of debt, mass exit of subscribers, poor content, poor talent, poor programming, and raising prices are just starting to effect siriusxm and it's all down hill from here. Funny when the merger happened none of this was mentioned. In fact just the opposite was mentioned by xm and sirius management, but that's what we all get from a government (FCC) approved monopoly. I was lucky to have my subs become due for renewal during the merge process, siriusxm offered everything short of multiple years of free service to try to keep my subs active. I don't regret rejecting that sucker bet.

 

It's too bad GM and other automakers are wasting money equipping their products with siriusxm from the factory, wasting all that money on radio's which will never, ever turn into siriusxm subscribers. Wonder how much the automakers could save by completly dropping or just having siriusxm as a option instead of standard....

[georgecdisc]

In fact just the opposite was mentioned by xm and sirius management, but that's what we all get from a government (FCC) approved monopoly.

It's a "monopoly" now, but it is sucks. Monopolies are supposed to have the ability to charge outrageous prices to customers, make huge profits. This is not exactly happening. Reason the FCC allowed this is because of competition from mp3 players, terrestrial radio, and CDs. Seems that the monopoly does not really exist all that much if they are failing to become profitable still. People have other choices outside satellite, and it shows that they are taking those choices. It really was in the best interest to merge, IMO, so they wouldn't compete. Proof shows that even as one company they can't make a comeback then they need to change their business around.

[bigdogxx]

In fact just the opposite was mentioned by xm and sirius management, but that's what we all get from a government (FCC) approved monopoly.

It's a "monopoly" now, but it is sucks. Monopolies are supposed to have the ability to charge outrageous prices to customers, make huge profits. This is not exactly happening. Reason the FCC allowed this is because of competition from mp3 players, terrestrial radio, and CDs. Seems that the monopoly does not really exist all that much if they are failing to become profitable still. People have other choices outside satellite, and it shows that they are taking those choices. It really was in the best interest to merge, IMO, so they wouldn't compete. Proof shows that even as one company they can't make a comeback then they need to change their business around.

 

 

What they need to do is right off the bat fire every DJ and talk show host making more then 50k a year, get back to playing actual music and cut out those commercials they lie about not having! Then they need to offer more then the same hundred songs per station playing on a continuous loop for months at a time, FM pretty much offers the same not to mention hd radio for free. Satellite radio is supposed to offer more then regular FM and IMO being uncensored does not make it worth the 10-15 or whatever they are trying to charge per month!

 

They don't need Oprah

They don't need Howard Stern

They don't need Opie and Anthony

They don't need mad dog Russo

 

The list can go on and on, their heads got way to big over at xm/sirus and it is sinking them quickly!

[gave20]

I'll pay because I absolutely hate modern country music and the 20 minutes of commercials that litter FM radio.

[Matt_]

I too did not renew it after the 3 free months.... There wasn't enough music stations to keep my interest.

 

I'd rather buy a new CD every month than pay for satellite radio!

[J-man67]

I have had XM for about 5 years now. I like it. For the past year I have not paid for it though. I let my new subscription that I got with my new truck run out and waited for them to call me. I played stupid and said, "well I don't know if I want it back" yada yada. the lady said she would give me a free 3 months to help with my decision. If I didnt want it after that I could cancel before the 3 months ran out to avoid being charged. Well I called to cancel before I was charged and I was offered another 3 months free. This has been working for a year or so now. :o)

[ctahoe]

In fact just the opposite was mentioned by xm and sirius management, but that's what we all get from a government (FCC) approved monopoly.

It's a "monopoly" now, but it is sucks. Monopolies are supposed to have the ability to charge outrageous prices to customers, make huge profits. This is not exactly happening. Reason the FCC allowed this is because of competition from mp3 players, terrestrial radio, and CDs. Seems that the monopoly does not really exist all that much if they are failing to become profitable still. People have other choices outside satellite, and it shows that they are taking those choices. It really was in the best interest to merge, IMO, so they wouldn't compete. Proof shows that even as one company they can't make a comeback then they need to change their business around.

 

 

 

At least thats what they would like us to think anyway. However since the merger service has gotten worse and prices have gone up. Competition is GOOD for consumers. The monopoly exists, siriusxm is failing to become profitable for others reasons. As someone who had Sirius and XM and multiple subscriptions we as consumers were much better off PRE-merger.

[ctahoe]

In fact just the opposite was mentioned by xm and sirius management, but that's what we all get from a government (FCC) approved monopoly.

It's a "monopoly" now, but it is sucks. Monopolies are supposed to have the ability to charge outrageous prices to customers, make huge profits. This is not exactly happening. Reason the FCC allowed this is because of competition from mp3 players, terrestrial radio, and CDs. Seems that the monopoly does not really exist all that much if they are failing to become profitable still. People have other choices outside satellite, and it shows that they are taking those choices. It really was in the best interest to merge, IMO, so they wouldn't compete. Proof shows that even as one company they can't make a comeback then they need to change their business around.

 

 

What they need to do is right off the bat fire every DJ and talk show host making more then 50k a year, get back to playing actual music and cut out those commercials they lie about not having! Then they need to offer more then the same hundred songs per station playing on a continuous loop for months at a time, FM pretty much offers the same not to mention hd radio for free. Satellite radio is supposed to offer more then regular FM and IMO being uncensored does not make it worth the 10-15 or whatever they are trying to charge per month!

 

They don't need Oprah

They don't need Howard Stern

They don't need Opie and Anthony

They don't need mad dog Russo

 

The list can go on and on, their heads got way to big over at xm/sirus and it is sinking them quickly!

 

 

 

AGREE!

[90454SS]

Sorry, they need howard...nuthin else.

[HawkeyeOC]

In fact just the opposite was mentioned by xm and sirius management, but that's what we all get from a government (FCC) approved monopoly.

It's a "monopoly" now, but it is sucks. Monopolies are supposed to have the ability to charge outrageous prices to customers, make huge profits. This is not exactly happening. Reason the FCC allowed this is because of competition from mp3 players, terrestrial radio, and CDs. Seems that the monopoly does not really exist all that much if they are failing to become profitable still. People have other choices outside satellite, and it shows that they are taking those choices. It really was in the best interest to merge, IMO, so they wouldn't compete. Proof shows that even as one company they can't make a comeback then they need to change their business around.

 

 

 

At least thats what they would like us to think anyway. However since the merger service has gotten worse and prices have gone up. Competition is GOOD for consumers. The monopoly exists, siriusxm is failing to become profitable for others reasons. As someone who had Sirius and XM and multiple subscriptions we as consumers were much better off PRE-merger.

 

 

Since the merger service has gone to crap! I changed my service from a 3 yr down to the $77 deal a few months ago and getting that money back has been one big challenge. They don't allow you to talk to that department directly. Lucky I paid with a Credit card. I had to have the credit card company do the work! In the meantime the sales guys are calling me every week to resign me up. I keep telling them they already have my money!

 

The better business bureau has a good write up of how messed up they have been since the merger. Never any problems with the radio, just the company behind it

http://www.bbb.org/new-york-city/business-...w-york-ny-9591/

 

"Complaints filed with the BBB allege that this firm has overcharged consumer’s accounts and incorrectly billed consumers for various services. Consumers report having difficulty resolving these problems with customer service."