Source: Washington Post

SIRIUS and XM already pay the highest music industry royalty fees in the industry (to the RIAA, BMI, ASCAP and SESAC), equal to about 8% of revenue. Regular radio does not have to pay these performance fees.

Now SoundExchange, another evil music industry organization, is seeking royalty payments from SIRIUS and XM starting at 10% of revenue and gradually increasing over the next six years to 23%.

In a joint statement Wednesday, XM and Sirius said the music industry’s proposal “unfortunately makes no sense.” The companies have proposed to pay royalties equaling 0.88% of gross subscription revenues.

Unlike traditional radio, both Sirius and XM, currently pay a set fee to SoundExchange for the right to play music. That six-year arrangement expires at the end of this year and the parties are currently in arbitration before the Copyright Royalty Board, a part of the Library of Congress, to determine the new rate. The companies haven’t disclosed what the current rate is though industry analysts have estimated it at between 4% to 7% of revenues.

“Together we have paid, and under our fair proposal, will continue to pay, significant compensation to artists and their record companies,” the companies said in their statement Wednesday.

Comment here.