SIRI monthly tread June 2015

[dm_4]

On June 17, 2015, our subsidiary, Sirius XM Radio Inc., entered into an agreement with Capitol Records LLC, Sony Music Entertainment, UMG Recordings, Inc., Warner Music Group Corp. and ABKCO Music & Records, Inc. to settle the case titled Capitol Records LLC et al. v. Sirius XM Radio Inc., No. BC-520981 (Super. Ct. L.A. County), which challenged our use of sound recordings fixed prior to February 15, 1972 ("pre-1972 recordings"). Pursuant to the settlement, we will pay the plaintiffs, in the aggregate, $210 million on or before July 15, 2015 and the plaintiffs will dismiss their lawsuit with prejudice. The settlement resolves all past claims as to our use of pre-1972 recordings owned or controlled by the plaintiffs and enables us, without any additional payment, to reproduce, perform and broadcast such recordings in the United States through December 31, 2017. As part of the settlement, we have the right, to be exercised before December 31, 2017, to enter into a license with each plaintiff to reproduce, perform and broadcast its pre-1972 recordings from January 1, 2018 through December 31, 2022. The royalty rate for each such license will be determined by negotiation or, if the parties are unable to agree, binding arbitration. The plaintiffs have represented and warranted to us that in the United States they own, control or otherwise have the right to contract with respect to approximately 80% of the pre-1972 recordings we have historically used.

[MUSCLE13]

On June 17, 2015, our subsidiary, Sirius XM Radio Inc., entered into an agreement with Capitol Records LLC, Sony Music Entertainment, UMG Recordings, Inc., Warner Music Group Corp. and ABKCO Music & Records, Inc. to settle the case titled Capitol Records LLC et al. v. Sirius XM Radio Inc., No. BC-520981 (Super. Ct. L.A. County), which challenged our use of sound recordings fixed prior to February 15, 1972 ("pre-1972 recordings"). Pursuant to the settlement, we will pay the plaintiffs, in the aggregate, $210 million on or before July 15, 2015 and the plaintiffs will dismiss their lawsuit with prejudice. The settlement resolves all past claims as to our use of pre-1972 recordings owned or controlled by the plaintiffs and enables us, without any additional payment, to reproduce, perform and broadcast such recordings in the United States through December 31, 2017. As part of the settlement, we have the right, to be exercised before December 31, 2017, to enter into a license with each plaintiff to reproduce, perform and broadcast its pre-1972 recordings from January 1, 2018 through December 31, 2022. The royalty rate for each such license will be determined by negotiation or, if the parties are unable to agree, binding arbitration. The plaintiffs have represented and warranted to us that in the United States they own, control or otherwise have the right to contract with respect to approximately 80% of the pre-1972 recordings we have historically used.

Well that's the end of that. I am surprised they paid that much. By the way where is Spencer's $2 billion exposure???smh I bet they recover going forward with their royalty charges with customers

[MUSCLE13]

Listened to Howard this week. He thinks very highly of Jim Meyer and has said it more than once. I think he stays. I wouldn't be surprised if he re-signs for another 5 years in December.

Excerpt -
Howard said they started out with 400,000 subscribers there and now they have like 27 or 28 million. Howard said he believed they could have 30 million. He said today it is a big service. He said he's very proud of that and he thinks they had something to do with that in a big way. Howard said he feels allegiance to the company so they'll see what happens.

http://marksfriggin.com/news.htm#wed

[dm_4]

Listened to Howard this week. He thinks very highly of Jim Meyer and has said it more than once. I think he stays. I wouldn't be surprised if he re-signs for another 5 years in December.

Excerpt -
Howard said they started out with 400,000 subscribers there and now they have like 27 or 28 million. Howard said he believed they could have 30 million. He said today it is a big service. He said he's very proud of that and he thinks they had something to do with that in a big way. Howard said he feels allegiance to the company so they'll see what happens.

http://marksfriggin.com/news.htm#wed

one of the biggest reasons howard will re-sign is he does not want to have any of his staff lose jobs. Couldn't live with the guilt, He is funny/loyal like that.

Why would he leave....gets paid about 100million a year, goes home at end of day bangs a hot wife and he gets to play chess about 3 days a week. Pretty good gig.

[Slip60]

Well that's the end of that. I am surprised they paid that much. By the way where is Spencer's $2 billion exposure???smh I bet they recover going forward with their royalty charges with customers

Does this include Flo & Eddie? Settled with certain labels........ Also, I don't think $210mm is that much for all past plays and going forward through 2017. The labels they settled with state that 80% of Sirius pre 72 plays were from their catalog. That leaves 20% that hasn't been compensated. It's possible that going forward Sirius might only play those 80% of songs that they have a settlement on.

[dm_4]

Does this include Flo & Eddie? Settled with certain labels........ Also, I don't think $210mm is that much for all past plays and going forward through 2017. The labels they settled with state that 80% of Sirius pre 72 plays were from their catalog. That leaves 20% that hasn't been compensated. It's possible that going forward Sirius might only play those 80% of songs that they have a settlement on.

It does not include flo and eddie.

[siriustimes]

All the other services are now realizing they will have to get out their checkbook as well. Sirius can easily pass this charge along with a royalty fee adjustment.

[MUSCLE13]

Does this include Flo & Eddie? Settled with certain labels........ Also, I don't think $210mm is that much for all past plays and going forward through 2017. The labels they settled with state that 80% of Sirius pre 72 plays were from their catalog. That leaves 20% that hasn't been compensated. It's possible that going forward Sirius might only play those 80% of songs that they have a settlement on.

They just established market rate with the settlement. Any liability to the other 20% would be minimal/immaterial.

[MUSCLE13]

Will somebody please explain to me how in the world Spencer came up with a $2 billion figure a few weeks back??? I still can't believe anybody wrote that. Where is the retraction????

[MUSCLE13]

All the other services are now realizing they will have to get out their checkbook as well. Sirius can easily pass this charge along with a royalty fee adjustment.

Poor Poor Pandora. Where will internet radio companies come up with the money since they don't make any money???

WSJ excerpt -

The Recording Industry Association of America called the settlement a “step forward for music creators” and said it hopes “others take note of this important agreement and follow Sirius XM’s example.”

http://www.wsj.com/articles/sirius-s...ion-1435330183