A Call to Satellite Radio Consumers
June 21, 2006
Today Businessweek.com published an article relating to the RIAA suit against XM Satellite Radio, the current legislation in Congress (the PERFORM Act), and XM Satellite Radios response.
There are several issues at hand, and Satellite Standard Group applauds XM Satellite Radio for the stance they have taken.
What is unclear in the buisnessweek.com piece is that this PERFORM Act legislation issue could have a dramatic affect on both satellite radio carriers. Both Sirius and XM have a lot at stake with this legislation. More specifically, CONSUMERS have a lot at stake.
The RIAA issue also effects both companies. At this point Sirius has already negotiated a "settlement" for the S50 device that went on sale in late 2005. XM took a different stance with the RIAA on their devices, and the RIAA filed a law suit against XM Satellite Radio. Many who follow the issue believe that the RIAA filed the suit in an effort to get XM to the negotiating table.
As the Businessweek.com piece points out, many consumers may not grasp what is happening with this legislation, and thus may not act or let their voice be heard. Readers can see what the PERFORM act is
HERE. In an effort to get the word out, SSG will list the specific points that are at hand:
1. The legislation claims that it would create a "level" cost structure for copyrighted materials. However, the legislation SPECIFICALLY excludes over the air (traditional radio) broadcasting. Ironically, devices that are capable of the very issues that Senator Feinstein is designing this legislation to prevent are already being produced, and because they are designed for over the air broadcasts, they would not be covered. As HD radio emerges, there would be a distinct advantage to traditional radio companies, and the artists would receive NO PROTECTION under the legislation.
2. The legislation claims that it is not discriminatory, but neglects to point out that the exclusion of over the air (traditional radio) broadcasts are not included in the group that would have to pay fees. Feinstein states, " under current law some businesses are required to pay higher licensing rates than others even though they provide essentially the same services." This is exactly the case. Satellite Radio pays fees for EVERY song they air. Traditional radio pays NO FEES. How can this legislation possibly state that it is creating a "level" playing field?
On their website, XM Satellite Radio has issued the following appeal to their subscriber base:
Statement to XM Subscribers -
The XM Nation Everything we've done at XM since our first minute on the air is about giving you more choices. We provide more channels and music programming than any other network. We play all the music you want to hear including the artists you want to hear but can't find on traditional FM radio. And we offer the best radios with the features you want for your cars, homes, and all places in between. We've developed new radios -- the Inno, Helix and NeXus -- that take innovation to the next level in a totally legal way. Like TiVo, these devices give you the ability to enjoy the sports, talk and music programming whenever you want. And because they are portable, you can enjoy XM wherever you want. The music industry wants to stop your ability to choose when and where you can listen. Their lawyers have filed a meritless lawsuit to try and stop you from enjoying these radios. They don't get it. These devices are clearly legal. Consumers have enjoyed the right to tape off the air for their personal use for decades, from reel-to-reel and the cassette to the VCR and TiVo. Our new radios complement download services, they don't replace them. If you want a copy of a song to transfer to other players or burn onto CDs, we make it easy for you to buy them through XM + Napster. Satellite radio subscribers like you are law-abiding music consumers; a portion of your subscriber fee pays royalties directly to artists. Instead of going after pirates who don't pay a cent, the record labels are attacking the radios used for the enjoyment of music by consumers like you. It's misguided and wrong. We will vigorously defend these radios in court and before Congress, and we expect to win. Thank you for your support. This issue is VERY IMPORTANT to all consumers of satellite radio. It is important that these consumers take a few minutes to contact their state representatives to voice your concerns. This legislation is NOT limited to devices that are capable of recording content. It will effect satellite radio as a whole. Higher rates for the playing of music need to be absorbed somewhere.Satellite Standard Group would like to issue an appeal to ALL satellite Radio consumers to read the legislation, and contact your representatives with your opinion. We also issue an appeal to Sirius Satellite Radio and XM satellite radio to work together on a platform for protecting their customers. A joint web page that spells out the issue, and is easily linked to from the Sirius or XM site is needed. Competition between Sirius and XM is fine, but recognition that there is an issue such as this that threatens the industry on a common ground perhaps deserves a common effort to fight it.
Readers can learn who their representatives are
HERE . Please take a few minutes to help keep your rights as a consumer in tact.
The Businessweek.com article can be found
HERE6/21/2006 10:48:00 AM
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