Money-losing Sirius radio looks to cut artist fees
After years of mounting losses and with competitors emerging from every side, Sirius XM Canada wants to renegotiate the terms of its licence to save millions of dollars a year and put it on a more even footing with the traditional radio industry.
The Toronto-based satellite radio company’s licence is up for renewal for the first time since it was issued in 2005, and its executives will ask the Canadian Radio-television and Telecommunications Commission to cut its mandatory contributions to artistic development funds by about 90 per cent.
While radio stations are enjoying one of their best years ever, Sirius XM Canada faces the same problem plaguing newspaper publishers and television broadcasters – consumers are finding content for free, and turning away from subscription based services that require them to pay.
“Sirius XM Canada has been losing money at a disturbing rate,” the company says in a filing to the CRTC.