Sirius XM Comes Under Fire From Music Artists Over Royalties
The Recording Academy and the American Federation of Television and Radio Artist/the American Federation of Musicians of the United States and Canada are speaking out against this move by Sirius XM and calling it a blatant attempt by the satellite radio service to avoid paying royalties.
The notice states:
“In a move that is blatantly anti-artist and anti-musician, SiriusXM is seeking to sign up independent labels to a “direct license” deal that reduces the money it pays for music and gives your share to the record label, instead of directly to you – the performer, according to the member alert from the latter two organizations.”
The alert tells artists that if labels license music directly to Sirius XM, it would cut out the direct payments artist now receive from SoundExchange. Further the alert warns artists that a deal between the labels and Sirius XM would also devalue music. It appears that the goal is to get labels to continue to use SoundExchange for royalty purposes. The warning states that, ” ‘SoundExchange’ offers artists transparency, efficiency, accountability – and most important, direct, non-recoupable payment to artists of their fair share of royalties for SiriusXM’s use of your music.”
According to the Recording Academy direct licensing by labels to Sirius XM would result in “substantially reduced payments to artists and producers, a lowering of the value of performance royalties, and unnecessary conflict between artists and their labels.” To a certain extent this logic can not be debated as Sirius XM themselves have stated that this would give them a better royalty rate.
Neil Portnow, Recording Academy President/CEO also said, “Artists should be concerned about direct licensing; 100% of the royalties would be paid to the record label which in turn may pay artists at a lower rate, subject to recoupment. And labels should be concerned as well; the lower rate being offered could have the effect of lowering the value of performance royalties to all parties.”
Royalties will be a centerpiece issue throughout the audio entertainment landscape for quite a while. As yet a happy medium has not been found, but one thing is certain. Everyone wants their pound of flesh.
via [Billboard]
Position – Long Sirius XM Satellite Radio
good stuff. i love mel only because he exacts every pound of flesh. i would like to see soundexchanges breakdown of exec pay to disbursements. it’s probably heavy handed like everything else and artist never get the fair shake. mel is probably on to them and wants to go directly to the source and negotiate some exclusives….why not. it’s no secret the recording industry/groups are all shady as hell!!!! it’s our dime.
i would put mel in shady category as well. but he’s the best player and he’s on our team. go siri!!
They’re going to go after the “well” so to speak. As long as SIRI is making money, they are a target. As for the other “institutions” that provide music, no worry until they make a buck.
Who wants a middle man ” like the record lables dont enough money” iam sure there pockets are full cut the middle men and siri will have deep n full pockets!!!
Yes, Sirius is trying to cut out the middleman fees, therefore decreasing what they pay IN TOTAL–The artists,performers arent getting cut, as the article would imply, its the middleman, Soundexchange!!! Bravo
Some decades ago, recording was a big deal and required a lot of investment. A label company was necessary for an artist to become known.
All of that has changed now—-like everything else. The artists and SiriusXM should make their own deals.
Ur smart gary!!!!
IT’S Time everybody payed the piper and pay the artists,songwriters&producers . Their share in royalty.So get with the program Sirius xm.