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Sirius Sets Rate Hike For July 29

6/19/2009 10:33:00 AM Eastern

New York — Sirius XM will raise its rates by $1.98/month on July 29 to compensate for an increase in music royalty fees, it is telling its customers.

Customer-service representatives at its call center said consumers can avoid the increase by signing up for a year’s service or longer. A one-year commitment staves off the rate increase and rewards the consumer with one free month of service; two years allows five months of free service, and three years results in nine months of free service, and no rate hike, said representatives.

Sirius XM did not respond to TWICE inquiries on the matter.

The company representatives said Sirius XM is passing on royalty fees, as the Copyright Royalty Board has increased music royalty fees dramatically. Although Sirius XM cannot raise its fees for at least another two years, according to Federal Communications Commission (FCC) requirements, the FCC does permit it certain “pass through costs.” These guidelines were set by the FCC when Sirius XM merged July 25 last year.

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