Author Topic: SIRI - Sirius XM Radio  (Read 45965 times)

Happy

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Re: SIRI - Sirius XM Radio
« Reply #140 on: August 23, 2017, 01:30:40 AM »
Quote
http://www.billboard.com/articles/business/7556740/siriusxm-digital-royalties-double-soundexchange-proposal
In a rate proposal presented to the Copyright Royalty board recently, SoundExchange -- the agency responsible for collecting statutory royalties from digital broadcasters like Pandora -- is seeking to more than double the royalty payments it receives from SiriusXM.

SoundExchange has proposed that Sirius pay whichever bucket of revenue is greater, $2.28 per subscriber in 2018 (which would rise to $2.79 per subscriber in 2022) or 23 percent of gross revenue.

Currently, Sirius pays a statutory rate of 10.5 percent of revenue, and will pay 11 percent of revenue next year.

With a proposal that Sirius pay 23 percent of gross revenue for master recording ephemeral reproduction and performance royalties, that’s approaching almost 50 percent of the revenue it derives from its music-related stations.
Since Sirius currently direct about 3 percent of revenue towards publishing performance royalties, the service’s total payout stands at about 26 percent of revenue -- if the CRB agrees with Sound Exchange’s viewpoint -- which is nearly double the 13-14 percent of revenue in total music royalties that Sirius is estimated to pay out currently.

I came to the above link (dated October 2016) through the good article on iq25. Are rates, which SIRI has to pay on music, likely to go significantly up in the future? It feels a bit "too good to be true" or unfair that Pandora and Spotify must pay so much more of their revenues to the music industry. That is obviously great for SIRI, but is it sustainable? As SIRI is so profitable, it seems easy to argue that this competitive advantage is unfair and that new regulation will change it at some point.


thefatbaboon

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Re: SIRI - Sirius XM Radio
« Reply #141 on: August 23, 2017, 05:04:32 AM »
https://www.crb.gov/rate/

SDARS III is the docket you want. (assuming you want a few thousand pages of light reading)

The case has been argued and CRB due to rule by 15th December.

You might also want to read what the CRB judges ruled last time (on SDARS II):  https://www.crb.gov/fedreg/2013/78fr23054.pdf
« Last Edit: August 23, 2017, 05:14:20 AM by thefatbaboon »

Liberty

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Liberty

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Re: SIRI - Sirius XM Radio
« Reply #143 on: October 25, 2017, 05:22:27 AM »
http://investor.siriusxm.com/investor-overview/press-releases/press-release-details/2017/SiriusXM-Reports-Third-Quarter-2017-Results/default.aspx

Quote
- Third Quarter Revenue Climbs 8% to $1.4 Billion
- Quarterly Net Income Increases 42% to $276 Million; Diluted EPS Grows 49% to $0.06
- Adjusted EBITDA Grows 12% to a Quarterly Record of $551 Million and Margin of 39.9%
- Quarterly Operating Cash Flow Rises 24% to $521 Million
- Free Cash Flow Grows 22% to a Quarterly Record $434 Million
- Self-Pay Net Subscribers Increase 311,000 to Reach Approximately 27 Million
- Company Increases 2017 Guidance for Revenue, Adjusted EBITDA and Free Cash Flow
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MrB

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Re: SIRI - Sirius XM Radio
« Reply #144 on: October 30, 2017, 09:45:38 AM »
Con call has some interesting comments towards the end; response to the bear case.
L360 also signed up first major manufacturer. Think that is extremely interesting long term.


EricSchleien1

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thefatbaboon

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Re: SIRI - Sirius XM Radio
« Reply #147 on: December 18, 2017, 01:15:27 AM »
SDAR III increases the MRF for 2018-2022  to 15.5% of Gross Revenues  (up from 11% in 2017)

Market didn't like but I'm curious to see the company come out and give an analysis of the economic impact of the new rate in the context of the following carve-out that they are now allowed to make in calculating Gross Revenue:

"382.22 Calculation of Gross Revenue for SDARS. (b) Gross revenues exclude, (7) revenues recognized by Licensee (or otherwise received by Licensee if no GAAP "recognition"principles are applicable) for the provision of:  (ii) channels, programming, products and/or other services offered for a separate charge where such channels use only incidental performances of sound recordings"
 
https://www.crb.gov/rate/16-CRB-0001-SR-PSSR-SDARSIII/appendix-a-rates-and-terms.pdf

As far as I can tell from going over SDAR II this is a new exclusion.  See (near the end) Section 382 and the definition of Gross Revenues of SDAR II with following link https://www.crb.gov/fedreg/2013/78fr23054.pdf

It looks like Talk, Sports and News if charged for separately from Music will no longer count toward gross revenues.

If I am reading this correctly.... if they can allocate and separately charge 30% of their subscription services to non-Music services then doesn't 15.5% next year looks a lot like 11% this year?
« Last Edit: December 18, 2017, 01:22:28 AM by thefatbaboon »

EricSchleien1

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Re: SIRI - Sirius XM Radio
« Reply #148 on: January 13, 2018, 07:16:43 AM »