Is it true that we're going to get another $2 increase in our XM/Sirius bills despite SiriXM promising no rate increases? I already got hammered another $2/month on the family subs, now this? And they wonder why they lost 400,000 subs last quarter? Lose another million by doing stupid crap like this, if it's true?
-
Get involved.
We want your input!
Apply for Membership and join the conversations about everything related to broadcasting.
After we receive your registration, a moderator will review it. After your registration is approved, you will be permitted to post.
If you use a disposable or false email address, your registration will be rejected.
After your membership is approved, please take a minute to tell us a little bit about yourself.
https://www.radiodiscussions.com/forums/introduce-yourself.1088/
Thanks in advance and have fun!
RadioDiscussions Administrators
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
A Second Price Increase from SiriusXM?
- Thread starter JohnnyElectron
- Start date
JohnnyElectron said:Is it true that we're going to get another $2 increase in our XM/Sirius bills despite SiriXM promising no rate increases? I already got hammered another $2/month on the family subs, now this? And they wonder why they lost 400,000 subs last quarter? Lose another million by doing stupid crap like this, if it's true?
If it's true I'm gone.
R
RadioLoverIL
Guest
That's what someone is saying on XM-Fan. After the first year of the merger being completed they're allowed to pass on any increases for music royalty fees to the subscribers. Evidently, those music royalty fees are going up a half-percent, which should equal to 6 cents a month on $12.95 subs. However, supposedly, anyone with a $12.95 subscription will see a $1.98 per month added. I'm not sure how an increase of a half-percent on $12.95 comes out to $1.98. A $1.98 on $12.95 would represent a 15-percent increase.
I can't help but think this is a rate-increase being disguised as a music royalty fee increase to get around the 3 year price freeze. Don't get me wrong, I can see some of the increase going for the royalty fees, but I can't help but think a portion of that increase will be kept by XM/Sirius.
I can't help but think this is a rate-increase being disguised as a music royalty fee increase to get around the 3 year price freeze. Don't get me wrong, I can see some of the increase going for the royalty fees, but I can't help but think a portion of that increase will be kept by XM/Sirius.
RadioLoverIL said:That's what someone is saying on XM-Fan. After the first year of the merger being completed they're allowed to pass on any increases for music royalty fees to the subscribers. Evidently, those music royalty fees are going up a half-percent, which should equal to 6 cents a month on $12.95 subs. However, supposedly, anyone with a $12.95 subscription will see a $1.98 per month added. I'm not sure how an increase of a half-percent on $12.95 comes out to $1.98. A $1.98 on $12.95 would represent a 15-percent increase.
I can't help but think this is a rate-increase being disguised as a music royalty fee increase to get around the 3 year price freeze. Don't get me wrong, I can see some of the increase going for the royalty fees, but I can't help but think a portion of that increase will be kept by XM/Sirius.
If they raise the price in this economy they'll be out of business. Of course they may be anyway.
Has anyone seen anything about this anywhere else? The XMFan item was posted by someone who supposedly works at or for Sirius XM, probably one of their Jamaican/Canadian/Indian listener care representatives. Not exactly a highly placed source.
microbob said:Until it shows up on Orbitcast or Satwaves websites I wouldn't worry about it.
If it shows up on my bill then I'll worry about it.
RadioLoverIL said:I'm not sure how an increase of a half-percent on $12.95 comes out to $1.98.
The half-percent isn't on your 12.98, but on the fee they're already paying, which they then divide by the number of subscribers.
..."which they then divide by the number of subscribers...
Which just went down by 400,000 net subs the last quarter. Wonder how many net subs will be lost this quarter if they jack the rates and keep the rerun FM playlists on the decades channels (which were once THE reason to pay for XM)?
Which just went down by 400,000 net subs the last quarter. Wonder how many net subs will be lost this quarter if they jack the rates and keep the rerun FM playlists on the decades channels (which were once THE reason to pay for XM)?
Got this email from XM/Sirius today:
Dear XXXXXXXXXXX,
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 a loyal XM listener and we hope you continue to enjoy the unparalleled listening experience XM provides.
Joe XXXXXX
Chief Service Officer
SIRIUS XM Radio
Dear XXXXXXXXXXX,
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 a loyal XM listener and we hope you continue to enjoy the unparalleled listening experience XM provides.
Joe XXXXXX
Chief Service Officer
SIRIUS XM Radio
tjm_pro said:Got this email from XM/Sirius today:
Dear XXXXXXXXXXX,
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 a loyal XM listener and we hope you continue to enjoy the unparalleled listening experience XM provides.
Joe XXXXXX
Chief Service Officer
SIRIUS XM Radio
I have not gotten that letter. Are you a monthly subscriber?
tjm_pro said:Yes.. I've been a monthly subscriber since 2003.
So am I assuming correctly that if you have a longer term subscription you won't get this letter until your current period is up?
R
RadioLoverIL
Guest
Rates go that high by 2012, that'll kill this company. Also, what's to say in future years the fee isn't more than $2? What I mean, is if this first increase causes people to leave, that's going to leave fewer subscribers, which could mean those remaining subscribers will be left having to pay a bigger share to make up for the ones who've left.
In other words, say the fee Sirius/XM is paying is a certain amount now and it's being shared by the 19 million current subscribers. That fee to goes up next year, but there's only 17.5 million subscribers (I'm hypothetically speaking on the 17.5 million).....mathematically, that tells me the amount per subscriber could be more in future years.
Or am I missing something?
I think $15/month is about the point the rubber band will snap for many subscribers. I kind of wonder before they go over the $15 mark we won't see the company try to offset that some by adding commercials to some of the music channels.
In other words, say the fee Sirius/XM is paying is a certain amount now and it's being shared by the 19 million current subscribers. That fee to goes up next year, but there's only 17.5 million subscribers (I'm hypothetically speaking on the 17.5 million).....mathematically, that tells me the amount per subscriber could be more in future years.
Or am I missing something?
I think $15/month is about the point the rubber band will snap for many subscribers. I kind of wonder before they go over the $15 mark we won't see the company try to offset that some by adding commercials to some of the music channels.
R
RadioLoverIL
Guest
Let me add, they probably won't make this totally public until the first part of July....that way they can get through the 2nd quarter without a mass exodus. It'll be interesting to see what kind of blitz they put on in regards to lifetime subscriptions next month.
They've already destroyed the 60s channel.
RadioLoverIL said:Rates go that high by 2012, that'll kill this company. Also, what's to say in future years the fee isn't more than $2? What I mean, is if this first increase causes people to leave, that's going to leave fewer subscribers, which could mean those remaining subscribers will be left having to pay a bigger share to make up for the ones who've left.
In other words, say the fee Sirius/XM is paying is a certain amount now and it's being shared by the 19 million current subscribers. That fee to goes up next year, but there's only 17.5 million subscribers (I'm hypothetically speaking on the 17.5 million).....mathematically, that tells me the amount per subscriber could be more in future years.
Or am I missing something?
I was under the impression it was a fee per subscriber rather than the same fee across the board, independent of subscribers. Let's cross our fingers and hope that's the case.
- Status
- This thread has been closed due to inactivity. You can create a new thread to discuss this topic.