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The RIAA requests a 30% cut of Sirius’ revenues
Speaking at a Bear Stearns conference, Sirius Satellite Radio‘s Executive Vice President and Chief Financial Officer David Frear said that the RIAA and member record labels are pursuing a 30% share of revenue as “royalties”.
The satellite radio company, along with rival XM Radio, already pays a licensing fee to record labels and this request for more money follows Sirius’ recent earnings report that shows surging revenues of $80.0 million compared to the $25.2 million the quarter before.
Speaking on February 28, Frear said that Sirius should not have to pay any more than what it already does. In addition, he said that record labels aren’t happy with the company’s new S50 radio that can record Sirius boradcasts.
Sirius currently pays around 6% of its revenue to RIAA record labels. This rate will have to be renegotiated by June 30, 2006.
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