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.