Increasing Rates
The Copyright Royalty Board has determined that SiriusXM will pay 15.5% of revenue from music played for the next five years beginning in 2018 to 2022. This means that SiriusXM will experience a 41% hike from the current 11% percent rate.
On news of the rate increase, the SiriusXM share price fell 5.1%, from $5.66 to $5.37. The current stock price for SiriusXM at the time of publishing was $5.35.
The Copyright Royalty Board has not posted the final determination on their website yet. Many involved parties are still scrutinizing the document to make sure proprietary data is not publicly revealed.
In the first nine months of this year, Sirius XM has generated net income of $691.3 million. That is roughly 14 cents per diluted share, on revenues of $4.02 billion.
SiriusXM did not acknowledge the Copyright Royalty Board’s decision on their website. They also have not responded to a request for comment. However, in a filing with the Securities and Exchange Commission, SiriusXM stated that they were in the review process. They also expect to evaluate changes in pricing, including the amount of their U.S.
Continue reading The Copyright Royalty Board Raises Rate for SiriusXM at One EDM.
Source: oneedm.com
