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. icon
    Derek Kerton (profile), 19 Aug 2009 @ 5:18pm

    The Price of XM

    Got a new car, and I'm in the free trial phase of XM. They're sending me brochures fast and furious. But I think it's about $17/mo for the radio+traffic service.

    I know many people pay this, but WTF? I can get radio for free, I have an MP3 player with all my faves in the car, and Google gives (better) traffic info for free.

    I listen to a little talk, and the comedy channels. What I hear is digitized crap, still full of ads. The comedy routines are repetitive. The damned thing cuts in and out when there are trees, buildings, bridges, hillsides, etc. Overall, the XM product is very slightly better than terrestrial. I don't commute, so have limited use. I am willing to pay up to $3/mo for a subscription.

    I can't believe people are willing to pay the going rates. I guess that's one of the great things about the market. Different people have very diverse demand.

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