Passing the new royalty rate for music onto you . an Xm employee leaked this on Xmfan http://www.xmfan.com/viewtopic.php?t=103093 how do they think this is a good idea ?
I understand why but tend to agree with Ryan on the numbers used in the information.
i think there will be more Subs lost this quarter because of this, especially since there are so many alternatives to SiriusXm as far as music goes that are free and allow you to program channels yourself like Slaker and Pandora. Not to mention ipod's.
Posted by stan on May 29, 2009 at 00:19:45:
In Reply to: Sirius XM May Pass Along Music Royalty Fees posted by Barry on May 28, 2009 at 23:23:34:
I just looked at my online invoice. There's a line item for "Music Royalty Fee", but it has a zero dollar amount.
Last edited by tim wallick; 05-29-2009 at 08:08 AM.
Hey Charles, now we can talk about people leaving because of a increase, I would not blame them myself, after the second increase in almost as many months.
fm no more, I defended SIRIXM's last increase as it being not that big of a deal after 7 years of never a increase but to do it twice in almost as many months is a easy way to piss people off, and I also said the samething before that if they were to have done it several times in the same year, I would not defend them and maybe even joined in on the bashing.
If this is true, the $2 increase is complete bullshit. I would stand to guess that +90% will be pure profit for Sirius XM. If that does happen, I will be sure to make it my mission to let everyone know that the increase is crap that Sirius XM is passing on to subscribers (when they dont have to) under the guise of royal increases when its simply a for profit move.
This is similar to what cellphone carriers do except worse. They pass on govt taxes and fees to consumers which the govt makes clear are not meant for consumers and are to be paid by the company, the company just passes it on rather then bundling it into the cost of your plan... BUT at least they don't overcharge for those fees (as far as I know). A $2 increase would definitely be overchcarging.
From what I have read so far it is not 2 dollars in most cases, but between .67 and 1.97 depending on the type of subcription you have weather it is mostly music or not. You are correct it is for profit because as before you can just go for the extended plan and not pay the increase until it is time to renew. The company will take the extra cost on themselves in that case.
It probably makes more sense for Sirius XM to eat this cost rather then face the PR shitstorm. This is all bad news. You are going to see forums and websites all over the net criticize this move and then write about the alternatives, it will cost Sirius XM tens of millions of dollars. Everytime they screw up there are thousands of more links pointing to the likes of Slacker and Pandora, say what you will about the companies but anytime Sirius screws up they are making these services more well known to uneducated users.