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Media
Sirius XM to blame music royalties for subscription increase
By CMU Editorial | Published on Tuesday 9 June 2009
Struggling US satellite radio service Sirius XM is reportedly about to add two dollars to its monthly subscription rate, and is apparently internally blaming music royalties for the increase.
According to the Wall Street Journal, an internal training manual reveals the planned price hike, and says subs need to rise because “as an ongoing part of our business, Sirius XM must pay copyright music royalties to music companies and music publishers”.
Some wonder if regulators who approved the merger of former rivals Sirius and XM will have a problem with the price increase, which could be seen as an abuse of the merged company’s monopoly in the US satellite radio space, which might be why the increase is being linked to music royalties. Word is that restrictions on price hikes put in place by regulators prior to the merger do allow for the radio firm to pass on increases caused by a change in record company and music publisher royalty arrangements.
