Sirius XM Hit With Lawsuit Over Mandatory 21% Music Royalty Fee Added to Subscription Prices
Sirius XM is facing a class action lawsuit over its controversial "US Music Royalty" fee, which adds 21.4% to subscribers' monthly costs beyond the advertised price. The lawsuit, filed in Washington state, challenges this pricing practice as deceptive.
Burning money with royalty fees surcharge
Key points of the lawsuit:
- The fee affects approximately 33.9 million subscribers
- In 2023, Sirius XM collected $1.36 billion in music royalty fees, exceeding their net profit of $1.26 billion
- The company advertises subscription prices with "plus fees and taxes" in smaller print
- Plaintiffs argue that music royalties are a core business expense and shouldn't be treated as an additional fee
The lawsuit claims Sirius XM presents this fee as a government-mandated charge by grouping it with "fees and taxes." While music royalty rights are established by Congress through the Copyright Act, the plaintiffs argue that the separate fee structure is misleading since paying royalties is a fundamental operating cost for music services.
Legal actions have been filed in multiple states:
- Washington
- Florida
- Oregon
- New York
The plaintiffs seek:
- An injunction requiring Sirius XM to include the music royalty fee in advertised prices
- Damages for affected subscribers (amount to be determined in court)
The case specifically notes that no other music services charge separate royalty fees above their advertised prices, making Sirius XM's practice unique in the industry.
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