NEW YORK — Broadcast Music, Inc. (BMI) has filed an action in its rate court to determine what it considers to be “fair and appropriate fees” for a license with SiriusXM.
In the words of BMI, “Despite years of negotiations, SiriusXM is attempting to lower its payments to BMI songwriters, composers and publishers, ignoring BMI’s preeminent market share, changes in the marketplace, SiriusXM’s product evolution towards a digital service, and the company’s strong revenue growth.”
BMI President/CEO Mike O’Neill added, “After attempting to negotiate with SiriusXM in good faith for more than two years, we were compelled to file this action given their insistence on underpaying the creators of the music that drives the majority of their business. SiriusXM’s proposal is a clear attempt to rely on a rate that was established when the company was very different in terms of its size, reach, degree of digital focus and revenue growth, and falls well below what is in the best interests of our affiliates. We will continue to fight for fair and appropriate rates when we believe the music created by our songwriters and composers is being significantly undervalued.”
BMI added that, in its view, “songwriters and composers should not have to accept an outdated rate that significantly undervalues their music, which provides the very foundation for SiriusXM’s programming.”
— With reporting from RBR+TVBR in Dobbs Ferry, N.Y.
