Forbes Defending The SatRad Shorts: The (Stale) SoundExchange Survey

The SoundExchange study referenced below is one of the most poorly conceived and skewed surveys that I have ever seen. It was originally released on November 10th, and finally got picked up by Forbes a week later. SSG posted a response HERE which highlights the inherent flaws in this survey.

Why don't the SoundExchange folks ask terrestrial listeners how they would feel if there were no music channels on FM radio, after all, FM pays nothing (ZERO DOLLARS) to the Copyright Royalty Board.

I highlight this absurd quote: "One clear takeaway from this survey is that the foundation of satellite radio is built on music,” said SoundExchange Executive Director John Simson in a news release. “Without music, satellite services would crumble.”
This should read that "the foundation of terrestrial radio is built on music, and without music, TERRESTRIAL RADIO WOULD CRUMBLE."

Market ScanSurvey: XM, Sirius Should Pay More For Music
Matthew Kirdahy, 11.16.06, 6:03 PM ET, Forbes

Sirius and XM satellite radio services aren’t being fair, a recent survey claims.
As the rival satellite companies negotiate a new six-year royalty fees agreement with the Copyright Royalty Board, SoundExchange, a non-profit representing the music industry, contends Sirius Satellite Radio and XM Satellite Radio should pay more for broadcasting music.
The CRB, which governs the “fair” use of this intellectual property, is set to adopt a new rate by next year or early 2008. Until then, companies such as Sirius and XM will pay current rates, an estimated 4% to 7% of total revenues.
“This issue of the impact of music to providers is key to many of our proceedings,” said CRB’s Chief Copyright Royalty Judge to Forbes.com in an e-mail. “We will carefully consider it as the proceeding progresses.”
The CRB is considering new rates ranging from 10% to 23% of total revenue each year through 2012. That’s an average of 16.3% each year or $1.84 per month per subscription.
In a joint statement Thursday, XM and Sirius said: “Consumers, artists and the recording industry all benefit from satellite radio’s multi-billion dollar investment in a dynamic new promotional platform for music.
“Together we have paid, and under our fair proposal, will continue to pay significant compensation to artists and their record companies. By contrast, our primary competition, terrestrial radio, pays nothing for the sound recordings it uses.”
As of the last quarter, Sirius subscribers totaled 5.1 million, behind XM’s approximate 7 million....read more: here

11/16/2006 08:59:00 PM

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