Yesterday the Wall Street Journal reported that Sirius Satellite Radio was still in talks with Sony BMG and EMI Group over the Sirius S50 dispute.

Today the New York Times reports that Sirius has settled with Sony BMG Music Entertainment, a joint venture of Sony and Bertelsmann, according to a statement from Sirius spokesman Patrick Reilly.

No further details were learned about the cost of the agreement.

[New York Times] 

The Wall Street Journal reports some more details on the dispute over the Sirius S50 with Universal Music Group and Warner Music Group. If you're not caught up on it, essentially four major music companies have a bit of a problem with the Sirius S50 and it's ability to "disaggregate" and manage individual songs from satellite radio broadcasts. As a result, these companies felt that Sirius should pay a higher broadcast licensing fee.

Sirius has reached an agreement with both Universal Music Group and Warner Music Group. Sirius will pay both UMG and Warner a fee for each device sold (though the exact fee was never disclosed). In addition, the manufacturing run of the Sirius S50 is to be capped at a number that also was not disclosed.

Sirius is in still talks with EMI Group and Sony BMG, according to sources familiar with the matter, but it is unclear how close they are to an agreement.

The good news is, this is only limited to the Sirius S50 - the agreement does not apply to future devices (like the live Sirius portable receiver coming this summer).

[Wall Street Journal] 

SIRIUS Satellite Radio has come to an agreement with Universal Music Group over the ability to save individual songs to the Sirius S50. Warner Music Group says they have a similar deal in place. The dispute came about over the S50's ability to save individual songs from the satellite radio stream. UMB eLabs president Larry Kenswil even went as far as to call similar devices "cannibalization machines," at an event in New York.

Labels and publishers threatened to sue Sirius for copyright infringement last year over the S50, according to sources.

Sources say Sirius Satellite Radio has agreed to compensate UMG for the service and to avert a potential legal showdown. Consumer charges will not be affected. Warner Music Group's recorded music division has reportedly come to a similar agreement.

The deals are expected to act as a template for the other two major labels, similarly concerned with the timeshifting issue, with whom sources say Sirius is also in active negotiations. These deals put added pressure on XM who will be releasing the Samsung Nexus - which will have similar abilities as the Sirius S50 - as well as the Helix and Inno which also will have the ability to save songs from a satellite stream.

[Billboard.biz] 

Earlier today a commenter asked whether I had asked XM for their take on the Senate bill meant to block localized satellite radio content. I pinged both XM and SIRIUS on this, and here's what XM spokesperson Chance Patterson had to say:

XM's 6 million subscribers expect the most from their satellite radio provider.  XM will continue to deliver information like Amber Alerts, reports of severe weather, traffic jams, and play-by-play sports as long as the law and our FCC license continues to allow such programming.  We trust that the majority of policymakers agree that the availability of more information is good for consumers.

At the time of writing this, a spokesperson from SIRIUS hadn't gotten back to me.

I think that it's important that we express our concern over this bill. First thing's first, you can contact the Senators who proposed the bill by clicking next to their names: Sen Olympia Snowe - Maine (contact form), Max Baucus - Montana (contact form), and Trent Lott - Mississippi (contact form).

Then go here and contact your own state's Senator and let them know exactly how you feel about the "Local Emergency Radio Service Preservation Act of 2006" (S. 2418). I just cannot see a way that this is a "benefit" to the general community. There is a value to satellite radio providing localized content, and the only people this bill serves to benefit are members of the NAB.

Senators Olympia Snowe, Max Baucus, and Trent Lott, introduced yesterday the "Local Emergency Radio Service Preservation Act of 2006." This lovely bill is pushing to prevent satellite radio from developing receiver technology that lets satellite radio broadcasters offer "localized content" intermixed with national content, "or that would be selected based on the listener’s location."

The bill also requires the FCC to decide whether satellite radio broadcasters can continue to offer "locally oriented services on nationally distributed channels" - meaning the traffic and weather services offered.

Rep Chip Pickering, introduced a similar House version of the bill, H.R. 998, in March 2005. It now has 110 cosponsors.

Last year, SIRIUS Satellite Radio CEO Mel Karmazin reportedly floated the idea that his satellite service might offer local feeds of Howard Stern's show featuring local contests in order to lure national advertising.

In essence, the bill would prevent satellite radio broadcasters from inserting any form of “locally differentiated” content on their ground-based repeaters.

What I don't understand is exactly how having SIRIUS and XM offering localized content is such a harmful thing? During the Hurricane Katrina disastor, local terrestrial radio was disabled in areas affected. But with satellite radio, the "localized content" could have easily reached those in need.

Regardless, the NAB is relishing this move. NAB President/CEO David Rehr said, "It is crystal clear that both XM and Sirius - with nearly $1 billion in combined losses last year and having failed as a national programming service - are skirting the intent of their original FCC licenses."

Ridiculous. 

[more on Billboard Radio Monitor and on Radio World Online]

Remember when we heard about the RIAA wanting a bigger piece of the action from satellite radio? It now seems that they want to up the ante by 4-5 times the current rate... to 30% of revenues.

The contract with SIRIUS, XM and the RIAA expires at the end of this year. Both Sirius and XM have been paying for their music programming through a compulsory license - like other broadcast services - that requires the two to pay a relatively small fee every year.

This fee was agreed upon when satellite radio was just starting out. The new negotiations over rates must be agreed upon by June 30th, 2006 - if not, then the deal will enter into arbitration - and I'll almost guarantee you that it will.

[Dow Jones via Sirius Backstage]