BMI Sues SiriusXM Over Royalty Rates

Broadcast Music Inc. (BMI) has filed a legal action in the Southern District of New York against SiriusXM, citing a failure to agree on new royalty rates after more than two years of negotiations. BMI argues that SiriusXM, which has significantly grown and evolved its business model towards digital services, should pay higher royalties to songwriters and composers whose music is integral to its offerings. BMI's petition contends that SiriusXM's insistence on lower payments undermines the value of the music and reflects outdated rates established during a time when the company was much smaller. BMI's President, Mike O’Neill, emphasized that their action was necessary due to SiriusXM's refusal to negotiate fairly, indicating that the music creators deserve appropriate compensation. Additionally, SiriusXM is facing a separate $150 million lawsuit from SoundExchange over alleged unpaid royalties, complicating its financial landscape further. This legal dispute comes at a time when SiriusXM is completing its merger into 'New Sirius'.