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Sirius XM reportedly will pass higher music royalties to subscribers

We learned from Tom Taylor’s NOW Newsletter that some Sirius XM subscribers have been informed that their subscription costs will go up starting in mid-February. The price hike is attached to a Music Royalty Fee already paid by some accounts.

The following statement was submitted to Tom Taylor by a reader: “To our Valued Customers: Effective as of February 15, the U.S. Music Royalty Fee will increase from 13.9% of the price of all audio packages which include music channels to 19.1%.”

On December 15 the Copyright Royalty Board (CRB) increased royalty rates for satellite radio by 40%, for the 2018-2022 royalty period. The price hike notification sent to subscribers represents a 37% raise.

Wall Street investors didn’t love the CRB action, and SIRI stock skidded when the ruling came through.

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Brad Hill

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