With XM Satellite Radio and the RIAA going head-to-head against each other, XM is making sure that the Artist Community understands their commitment to them.
It's a smart move, and a necessary one, because music is the center of satellite radio. There's also, in my opinion, no better method for unsigned artists and back-album tracks to get airplay. Terrestrial radio has abandoned them.
Another point that is being brought up over and over again, and it's a key one for artists to consider: the satellite radio industry is the single largest contributor of sound recording performance royalties to artists and record labels.
And this is an industry arguably still in its infancy. Imagine 5 years from now. This is something that the RIAA isn't grasping for some reason, or perhaps they're a lil' too greedy and those tens of millions of dollars already being paid to them just isn't enough. Disgusting.
[XM Radio Open Letter to the Artist Community]
Thanks cb!
This is something that the RIAA isn't grasping for some reason, or perhaps they're a lil' too greedy and those tens of millions of dollars already being paid to them just isn't enough. Disgusting.
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Think about this... IF XM and Sirius were to have 30 million subscribers each... could they boss around and strong arm the RIAA? If this is what the RIAA is scared of this would be the time to strike... Huh?
Keep fighting the good fight XM. Sirius, sit back and reap the benefits if and when XM wins. Slackers, pussies.
XM is the one getting sued.
I guess. But Sirius has paid off the record companies. Something XM has not done, well anymore than they already have to. This "war" will benefit satellite radio as a whole if XM comes out on top. I believe.
Sirius is not being a slacker or a pussy for sitting back. They aren't being sued buy the RIAA. They went into negotiations for the S50 and knew that it would be better off to pay the record companies then worry about a long drawn out battle.
Biggest problem here is the bottom line. XM is already hurting, and hurting big time. Hurting may not even describe how bad it is for them right now. The bottom line for them already looks terrible, investors are scared and pissed, XM management is not standing behind the company by showing support with stock purchases (Hugh Panero owns 155,393 shares of which 150,000 were given to him. This in contrast to Mel Karmazin who owns 6.5 MIllion shares mast of which he bought), and they are losing the battle at not only retail each quarter, but OEM is now looking bad. The decision to pay for a lawsuit was not a good one, they should have negotiated with the RIAA when Sirius did and been able to come to the same deal at the end as Sirius.
There will not be a win for XM or the RIAA over this, both will have to lose. Both are not going to get what they want. The deal will be somewhere near what Sirius payed but XM will have paid for the extra time invested.
And for those of you thinking they are fighting the good fight...honestly, no one out there really even cares what XM is doing. No one besides us crazed fanatics. No one is buying XM because they stand up to the RIAA, and investors are not proud of what they are doing. Look at the stock still falling. Look at the retail share still below 50%. XM should have taken this in a different direction, especially with all the other issues they are having right now.
tussel I know it is not really the same thing but at least XM has a lower payment rate for Fox content thanks to Sirius' negotiation.