got a letter from sirius

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mdram

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Aug 24, 2005
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Md
Thank you for being a SIRIUS subscriber. We are dedicated to providing our subscribers with the best programming and listener experience available on radio today. As part of this commitment, we have an important update regarding your SIRIUS subscription.

Music royalty rights were established by the U.S. Congress as part of the Copyright Act. This Act requires payment of copyright music royalties to recording artists, musicians and recording companies who hold copyrights in sound recordings.

These royalties have recently increased dramatically, principally as a result of a decision made by the Copyright Royalty Board, which is designated by the Library of Congress to set royalty rates for sound recordings. Beginning on July 29, 2009, a “U.S. Music Royalty Fee” of $1.98/month* for primary subscriptions and $.97/month* for multi-receiver subscriptions will be effective upon your next renewal. This fee will be used directly to offset increased payments from SIRIUS XM to the recording industry.

Unfortunately, we cannot control the Copyright Royalty Board's rate increase, but we can offer you ways to save on your subscription. The longer your subscription, the more you save!
 
If they are no longer paying the royalty fees which they were paying before, then how come the base rate is not going down?

That sounds like a price increase to me.
 
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