XM Satellite Radio (Nasdaq: XMSR), SIRIUS, (Nasdaq: SIRI) and SoundExchange, today announced an agreement on royalty rates and terms for the public performance of copyrighted sound recordings by the satellite digital radio services. The agreement covers the period through December 31, 2006. Terms of the agreement are confidential.
“The royalties paid under this agreement will be an important new revenue stream for the 3,000 labels and thousands of artists we represent. The agreement once again compensates artists and copyright owners for public performances of their creative works,” said John L. Simson, Executive Director, SoundExchange.
SIRIUS Vice President, Business Affairs, Doug Kaplan and XM Senior Vice President, Regulatory, Lon Levin commented, “We’re pleased to have reached an amicable agreement that compensates performers and record labels. We look forward to a long and productive relationship with artists and the recording industry.”
“We are delighted to have reached an agreement that compensates creators and allows XM and SIRIUS to grow while avoiding a costly arbitration. We expect this agreement to be the start of a mutually beneficial relationship with these exciting new services for many years to come,” said Steven Marks, Senior Vice President, Business and Legal Affairs at RIAA.
“Musicians make huge investments of money, soul, talent, and heart when they record their music,” said Thomas F. Lee, President of the American Federation of Musicians. “This agreement will ensure that they benefit from the exciting opportunities offered by XM and SIRIUS.”
“We are pleased to reach a settlement that will provide an opportunity for these new services to develop while ensuring that artists are compensated,” said AFTRA’s Director of Sound Recordings, Ann Chaitovitz. “This settlement shows that the music industry is changing, not dying, and that there will be important new income streams for artists and labels.”
SoundExchange is the first performing rights organization in the United States to collect and distribute royalties to sound recording copyright owners, featured artists, and to AFTRA and AFM on behalf of background musicians and vocalists from digital audio transmissions. SoundExchange represents over 400 different record companies,their 3,000 record labels, and thousands of recording artists. SoundExchange's members include the five major label groups: BMG, EMI, SONY, UMG, and WMG plus Rounder Records, Alligator Records, Mountain Apple, Naxos, Koch, and many of the World's leading independent labels of every size and in every genre. SoundExchange is a not-for-profit organization governed by a board of artist representations and label representatives.
SoundExchange has licensed satellite, cable, and Internet radio with licenses for both commercial and non-commercial services. SoundExchange's services include track level accounting of performances to its members and the most up-to-date information on streaming and digital transmissions. For more information about SoundExchange, visit www.soundexchange.com or call (202) 828-0120.
SIRIUS brings listeners 100 streams of music and entertainment Coast-to-coast. SIRIUS offers 60 music streams with no commercials, along with 40 world-class sports, news, and entertainment streams for a monthly subscription fee of $12.95. Stream Jockeys create and deliver uncompromised music in virtually every genre to our listeners 24- hours a day. Satellite radio products bringing SIRIUS to listeners in the car, truck, home, RV, and boat are manufactured by Kenwood, Panasonic, Clarion, Audiovox, and Jensen, and are available at major retailers including Circuit City, Best Buy, Car Toys, Good Guys, Tweeter, Ultimate Electronics, Sears, and Crutchfield. SIRIUS has exclusive partnerships with DaimlerChrysler, Ford, and BMW. Automotive brands currently offering SIRIUS radios in select new car models include BMW, Chrysler, Dodge, Jeep®, and Nissan. Automotive brands that have announced plans to start offering SIRIUS in select models include Ford, Lincoln, Mercury, Mercedes-Benz, Jaguar, Volvo, Mazda, Infiniti, MINI, Audi, Volkswagen, Land Rover, and Aston Martin.
Click on sirius.com to listen to the 60 music streams on SIRIUS LIVE or to find a SIRIUS retailer or car dealer in your area.
Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions, future events, or performance with respect to SIRIUS Satellite Radio Inc. are not historical facts and may be forward-looking and, accordingly, such statements involve estimates, assumptions, and uncertainties which could cause actual results to differ materially from those expressed in any forward-looking statements. Accordingly, any such statements are qualified in their entirety by reference to the factors discussed in our Registration Statement on Form S-4 (File No. 333-101317), and amendments thereto, filed with the Securities and Exchange Commission. Among the key factors that have a direct bearing on our results of operations are: our dependence upon third parties to manufacture, distribute, market and sell SIRIUS radios and components for those radios; the unproven market for our service; our competitive position and any events which affect the useful life of our satellites.
XM is transforming radio, an industry that has seen little technological change since FM, almost 40 years ago. XM's programming lineup features 101 coast-to-coast digital channels: 70 music channels, more than 35 of them commercial-free, from hip hop to opera, classical to country, bluegrass to blues; and 31 channels of sports, talk, children's and entertainment. XM's strategic investors include America's leading car, radio and satellite TV companies -- General Motors, American Honda Motor Co. Inc., Clear Channel Communications and DIRECTV.
XM had more than 360,000 subscribers as of Jan. 8, on track to exceed 1 million subscribers in 2003. General Motors recently announced it will expand the availability of factory-installed XM radios across 44 different models, including household brand names such as Buick, Cadillac, Chevrolet, GMC, Oldsmobile and Pontiac. Honda announced it will make XM available as a factory-installed feature on key Acura and Honda models, including the top-selling Honda Accord. Toyota announced that XM will be available on the new Scion band models. XM will be available as an option on future Nissan, Infiniti, Audi and Volkswagen models. XM radios are available at major electronics retailers nationwide. Leading manufacturers such as Sony, Alpine, Pioneer, Audiovox and Delphi, maker of the acclaimed SKYFi radio line, offer a broad array of XM radios that easily enable any existing truck or car stereo system. For more information, please visit www.xmradio.com.
Factors that could cause actual results to differ materially from those in the forward-looking statements in this press release include demand for the company's service, the company's dependence on third party vendors, its continuing need for additional financing, as well as other risks described in XM Satellite Radio Holdings Inc.'s Form 8-K filed with the Securities and Exchange Commission on 12-24-2002. Copies of the filing are available upon request from XM Radio' s Investor Relations Department.
The Recording Industry Association of America is the trade group that represents the U.S. recording industry. Its mission is to foster a business and legal climate that supports and promotes our members' creative and financial vitality. Its members are the record companies that comprise the most vibrant national music industry in the world. RIAA® members create, manufacture and/or distribute approximately 90% of all legitimate sound recordings produced and sold in the United States.
In support of this mission, the RIAA works to protect intellectual property rights worldwide and the First Amendment rights of artists; conduct consumer industry and technical research; and monitor and review - - state and federal laws, regulations and policies. The RIAA® also certifies Gold®, Platinum®, Multi-Platinum, and Diamond sales awards, and launched Los Premios De Oro y Platino, an award celebrating Latin music sales.
The American Federation of Musicians of the United States and Canada is the largest organization in the world dedicated to representing the interests of professional musicians. Whether it is negotiating fair agreements, protecting ownership of recorded music, securing benefits such as health care and pension, or lobbying our legislators, the AFM is committed to raising industry standards and placing the professional musician in the foreground of the cultural landscape. For more information, please visit www.afm.org.
AFTRA is a diverse union representing 80,000 U.S. actors, broadcasters and other professionals in television, radio, sound recordings, commercials, non-broadcast/industrial programming and new technologies such as interactive programming and CD ROMs. AFTRA often represents recording artists in Copyright Arbitration Royalty Panel Proceedings (“CARPs”).