Sirius XM Passes RIAA Tax On To Consumers

from the but-of-course dept

Not quite sure how I missed this earlier (update: oops, turns out we didn't miss it -- so consider this an encore presentation), but Bret alerts us to the news that with the ever increasing royalty rates pushed by the RIAA in the form of its "spin-off" Sound Exchange, and codified by the Copyright Royalty Board (for whom I still do not understand how anyone can justify its existence), that Sirius XM has simply added a $2 RIAA tax to everyone's monthly bills to help pay for the new performance royalties. Yup, because the RIAA and its members haven't been able to come up with a business model that works, they get the courts to tax you for listening to your satellite radio (on top of what you already pay and what they already pay to songwriters and publishers) and that gets passed on to you. Just imagine what will happen if the RIAA gets its wish and gets to add a similar tax to terrestrial radio stations as well. If you thought radio was chock full of commercials before...

Filed Under: performance royalties, radio, satellite radio, tax
Companies: riaa, sirius xm


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  1. identicon
    Trails, 19 Aug 2009 @ 10:19am

    This I don't get

    "Just imagine what will happen if the RIAA gets its wish and gets to add a similar tax to terrestrial radio stations as well. If you thought radio was chock full of commercials before..."

    So the RIAA has a lot of moves which we've shown to be bad for everyone except the RIAA. I get that, it's unbridled self interest and greed.

    This one I don't get. Radio is how they foist off their chosen "stars" on the public, via payolla, for e.g.

    If they get to "Tax" radio stations, they will essentially cause more people to stop listening to radio, they'll go look for music from independent sources, internet, pirate bay, etc...

    While I don't agree with many RIAA moves, they are at least strategic in their self-interest. This strikes me as strategically stupid for them. Am I missing something?

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