BMI Files Action In Rate Court Against SiriusXM

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BMI filed an action in its rate court today (Sept. 12) to determine fees for a license with SiriusXM.

According to BMI, SiriusXM is attempting to lower its payments to BMI songwriters, composers and publishers despite years of negotiations. The PRO alleges that the digital radio giant is ignoring their large market share, changes in the marketplace, SiriusXM’s product evolution towards a digital service and the company’s strong revenue growth.

“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,” says Mike O’Neill, BMI’s President & CEO. “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.”

NMPA President & CEO David Israelite has come out in support of BMI’s action.

“Digital radio payments to songwriters and music publishers have been a huge problem for many years. We are extremely pleased that BMI has taken the largest satellite radio company in the world to court to demand what’s fair,” Israelite shared in a statement. “Today, record labels and artists receive from digital radio significantly more than songwriters on a model that has historically valued them equally. Labels and artists are not paid too much. Songwriters and publishers are not paid enough. That’s why for years we have called to lessen the ‘Digital Radio Divide.’”

SiriusXM did not immediately return a request for comment.

LB Cantrell
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