Music Copyright Royalty Increases

Last week I got the following email from XM satellite radio saying that they are raising my monthly fee because of increases to the royalties they have to pay for playing copyrighted music. This got me upset, not necessarily because of the small fee increase, but because the money is going to just the big labels. For those of you who don’t know, there’s an organization called SoundExchange setup to collect royalties for radio airplay (for satellite and internet only since FM/AM do not pay royalty fees). This organization works hand-in-hand with the RIAA, which represents the handful of big labels. Independent record companies and independent artists hardly are able to recoup any royalties. In practice, even if the radio is playing songs not represented by the RIAA, the money still goes to them! And let’s face it, how many people have satellite radio to listen to normal Top 20 songs? It’s a big scam.

Thank you for being an XM subscriber. We are dedicated to providing our subscribers with the best programming and listener experience available on radio today. As part of this commitment, 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. 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.

Unfortunately, we cannot control the Copyright Royalty Board’s rate increase, but we can offer you ways to save on your subscription. The longer your subscription, the more you save!Thank you for being an XM subscriber. We are dedicated to providing our subscribers with the best programming and listener experience available on radio today. As part of this commitment, 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. 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.

Unfortunately, we cannot control the Copyright Royalty Board’s rate increase, but we can offer you ways to save on your subscription. The longer your subscription, the more you save!