Bullet Point – Getting Indications About Royalties
I am getting reports that Royalty rates have been set at 9% for 2013 and go up half a point a year through 2017. If this is correct it is very good news for SiriusXM. Working on confirmation now.
Update – While I have had several people send communications regarding royalty rates, I have been unable to find any concrete confirmation on this.
Bullet Points are usually for SiriusBuzz Premium members, but this one is available to all readers. Thank You all for supporting the site and making SiriusBuzz and SiriusBuzz Premium the de facto destination for all things Satellite radio!
What was the expectation? What is in now? What did the stock skyrocket?
Current Developments
Determination of Rates and Terms for Preexisting Subscription Services and Satellite Digital Audio Radio Services, Docket No. 2011-1 CRB PSS/Satellite II
On December 14, 2012, the Copyright Royalty Judges issued their Initial Determination setting rates and terms for the digital performance of sound recordings and the making of ephemeral recordings by preexisting subscription services (PSS) and preexisting satellite digital audio radio services (SDARs) under the statutory licenses set forth in Sections 112 and 114 of the Copyright Act for January 1, 2013, through December 31, 2017.
Section 112 Rates: The Judges adopted the Parties’ Stipulation regarding the rates and terms for the Section 112 rates, which will require a minimum fee advance payment of $100,000 per year, with royalties accruing during the year recoupable against the advance. The parties agreed that the value of the royalties allocated to the Section 112 license holders is 5% of the total royalty obligation, with the remaining 95% going to the Section 114 license holders.
Section 114 Rates: The Judges determined that the appropriate Section 114(f)(1) rates for Preexisting Subscription Services for 2013-2017 are 8% of Gross Revenues for 2013 and 8.5% for 2014 through 2017.
The Judges determined that the appropriate Section 114(f)(1) rates for Preexisting Satellite Digital Audio Radio Services for 2013-2017 are 9% of Gross Revenues for 2013, 9.5% for 2014, 10.0% for 2015, 10.5% for 2016 and 11.0% for 2017
Tremendous move. I would not have thought this was that big a deal. Timing with dividend must have made difference.
ameritrade confirms the 9%