Sirius XM Raises Prices This Week…

Monday, July, 27, 2009 by Mel Phillips.

This is the week you’ll be paying more for your Sirius XM subscription.  Why?  Because music-royalty fees have increased — that’s why, according to Sirius XM.  The increase won’t put a dent in your rent money.  Sirius XM is passing on “A U.S. Music Royalty Fee” of $1.98 per month for primary subscriptions and 97 cents per month for multi-receiver subscriptions the next time you re-up.  According to XMS, “the fee will be used to offset increased payments to the recording industry”.  Most consumers will accept the pass-along as another increase they have no control of.  Some consumers have decided to fight it…

Consumer Affairs reports a number of consumer complaints about the Sirius XM price increase — so does the FCC.  When Sirius and XM merged in 2008, the new company told the FCC that it voluntarily capped its basic subscription package at $12.95 a month to answer concerns that the merger would lead to a monopoly and higher prices.  There was one exception — Sirius XM could pass along some costs associated with music royalties.  The FCC said that Sirius could increase costs related to royalties based only on where those costs stood on the date (March 20, 2007) the merger was approved.  On that date, the royalty rate was 6 percent of the subscription fee.  The rate increase will be 6.5 percent on Wednesday, an 8.3 percent jump.  The rub is this: Sirius XM’s $1.98 bump in the basic monthly subscription rate of $12.95 represents a 15 percent rise — far more than the 8 percent the FCC approved in its ruling.  Sirius XM says they have the right to raise their base price of specific service plans for three years after the merger…

Could this subscription price hike fuel an FCC inquiry?  Sure, but let’s say that happens.  The worst result would be the FCC slapping a fine on Sirius XM and Mr. Karmazin paying it with a smile on his face.  It’s the price of doing business…   

10 Timeline Memories:

1. 1940] Bugged: Bugs Bunny makes his debut in the Warner Brothers animated cartoon “A Wild Hare“…
2. 1953] This war is over: The Korean War armistice is signed at Panmunjom, ending three years of fighting…
3. 1960] Nixon’s the one: VP Richard Nixon is nominated for president at the Republican national convention in Chicago. The funniest sign at the convention was the pregnant delegate with a “Nixon’s The One” sign on her belly…
4. 1980] The Shah checks out: The deposed Shah of Iran, Mohammad Reza Pahlavi, dies from lymphoma in Egypt at age 60…
5. 1992] Another Celtic tragedy: Boston Celtics star Reggie Lewis, 27, dies after collapsing during practice…
6. 1995] This is dedicated to the ones we love: The Korean War Veterans Memorial is dedicated in Washington, D.C…
7. 1996] Dropping a bomb: A home-made bomb explodes in Centennial Olympic Park in Atlanta (GA) killing one person and injuring more than 100. The games continue and a suspect (Richard Jewell) is charged (wrongly) in the case in 2003…
8. 2003] Sir Lancelot: Lance Armstrong wins a record-tying fifth straight Tour de France title…
9. 2003] “Happy Trails“: Legendary comedian Bob Hope dies at the age of 100…
10. 2005] Foam fly-over: NASA grounds future shuttle flights after a sizable chunk of foam insulation comes flying off the shuttle Discovery’s fuel bank during liftoff…

Music Memories:

• 1959] Released on this date: “Sleepwalk” - Santo & Johnny…1974] “Sweet Home Alabama” - Lynyrd Skynyrd…

“Happy Birthday…happy birthday“: Alex Rodriguez (34), Maya (SNL) Rudolph (37), Maureen McGovern (60), Peggy Fleming (61), Bobbie Gentry (65), Ron Alexenburg (67), Jerry Van Dyke (78), Harvey Fuqua (80) and Norman Lear (87)…

Timeline Countdown: 12 days until the NFL HOF induction, 42 days until Labor Day and 45 days until the NFL opener…

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