OT: Question for copyright experts

craftech wrote on 6/26/2009, 5:33 AM
Just received this from XM Satellite Radio (merged with Sirius through an FCC waiver that allowed them to create a single monopoly):

Thank you for being an XM 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 XM subscription..

In other words, give us your credit card information and we'll give you a better deal. Good luck ever trying to "unsubscribe".

Question:

Is this legal? And why isn't FM and AM radio subject to this which are both free?

XM - Sirius and AM and FM all have paid advertising.

Thanks,

John

Comments

farss wrote on 6/26/2009, 5:56 AM
I can't really speak for what happens in the USA however certainly down here radio stations do pay to play. Years ago they used not to.
Probably one reason the broadcasters cannot charge for AM and FM access is there's no mechanism to do so. I also recall one concern with digital radio is you can record the digital stream.

Anyways if you think that's bad down here the relevant body is asking for an enormous hike in the fees they levy restaurant owners and fitness clubs. It's yet another move that'll have us hearing less music or else there'll be quite a market for new music that's royalty free in which case everyone will loose.

Bob.
Steven Myers wrote on 6/26/2009, 6:27 AM
And why isn't FM and AM radio subject to this which are both free?

Just a guess: The royalties cost goes into the advertising rates. The advertisers factor it into the price for which they sell a can of refried beans. Same as it ever was.

Having friends who are songwriters, some of whom are artiste types who could never handle real jobs, I like the fact that royalties are paid. Keeps my buddies in electricity and Budweiser!
For the same reason, I'm extra careful to avoid violating even the spirit of intellectual property laws. Even if everyone else on the planet believes that life is just an exercise in which we all try to cheat each other, I'm not going to play along.
musicvid10 wrote on 6/26/2009, 7:49 AM
EDIT --

It's a surcharge. They don't have to charge it, and although they have to pay blanket royalties, I suspect they are making money on it. As a subscription service, they have the means (and the right) to do so.

See This:
http://industry.bnet.com/technology/10002363/sirius-xm-price-hike-using-royalties-as-income-boost-excuse/
craftech wrote on 6/26/2009, 8:06 AM
Thanks Musicvid,

That article confirms my suspicions. I am always against monopolies and mergers. Lax as the FCC has been, this merger topped the cake by creating a single satellite radio monopoly with some nebulous promises for the consumer by XM and Sirius. It just proves my often made point. Lack of competition is NEVER good for the consumer.

John
A. Grandt wrote on 6/26/2009, 8:08 AM
"or else there'll be quite a market for new music that's royalty free in which case everyone will loose."

I don't know how different it is elsewhere, but in Denmark you have to pay royalties, even if you only broadcast royalty free music.
Of course in Denmark an artist has to pay royalties for playing his or her own music at concerts or gatherings.

plasmavideo wrote on 6/26/2009, 8:26 AM
Actually this does heavily affect OTA AM and FM stations, and has been the subject of much industry chatter recently. Stations CAN up the commercial rate to cover the difference in theory, but the industry is in an economic tailspin, and advertising revenue is severly limited right now.

One of the arguments in the industry against this huge increase is that artists and record companies are being given free exposure of their product over the air.

In the old days, this argument was very true. Radio stations provided a lot of free promotion of product which listeners then would purchase.

Today, however, stations rarely, if ever, give titles and artist names associated with the songs, as they have developed the new mantra of "never talk or say anything relevent - just play 10 songs in a row and then 5 minutes of back-to-back commercials".

With the amount of free sharing of music in pristine quality today, the "record" companies and artists are looking for revenue wherever thay can find it.

The old model of promotion/sales no longer exists in usable form.