CRB Determination of 41% Hike Could Mean Materially Higher Copyright Expenses, SiriusXM Says
SiriusXM could face materially higher copyright expenses after Thursday's Copyright Royalty Board determination of a 41 percent hike, the company said in an SEC filing Friday. It said it's still evaluating the CRB terms and rates announced, and it anticipates…
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evaluating changes in pricing. It said the determination likely will mean higher aggregate royalty expenses annually starting next year. SiriusXM said it will have to pay a royalty of 15.5 percent of gross revenue, subject to exclusions and adjustments, for the five years ending Dec. 31, 2022, up from its current 11 percent. The company didn't comment further. SoundExchange said CRB didn't adopt the rates it advocated, but the ruling "demonstrates an important step in the right direction toward valuing the contributions of the music creators." It said the decision reinforces the need to amend the Copyright Act Section 801(b) rate standards for satellite radio and some cable radio services. American Federation of Musicians said the rate increase is welcome, but "our broken copyright system still allows this wildly profitable company to underpay for recorded music based on a below-market standard." SiriusXM shares closed down 5.1 percent at $5.37.