U.S. Music Royalty Fee
I haven’t studied my XM Satellite Radio bill for a few months. Starting a few months ago, they added a “U.S. Music Royalty Fee” to my bill, adding $1.98 per month.
They explain it here:
Music royalty rights were established by Congress and are the product of the Copyright Act. Unlike terrestrial radio, both SIRIUS and XM are required to pay copyright music royalties to recording artists, musicians and recording companies who hold copyrights in sound recordings (the actual recording of a work). These royalties have risen dramatically as a result of a decision of the Copyright Royalty Board.
So terrestrial radio gets to skip the fee. I’m guessing they have more lobbyists and political influence. This reminds me of additional state taxes levied on satellite TV providers.
Performance royalties for terrestrial radio passed the Senate Judiciary Committee last week. http://www.radioworld.com/article/88802
Why don’t Sirius/XM pay the Royalty Fees? I don’t think it is right that they make their customers pay a fee in which they are responsible for paying. Years ago I worked at a local radio station in my hometown and we did not make our listeners or advertisers pay the fee. This is just another way for Sirius/XM to increase the price.