XM-Sirius Deal Bad for Recording Artists

As reported through the Daily Swarm and Wall Street Journal, the now approved XM-Sirius Satellite Radio merger will likely lead to "a number of programming changes as the companies get rid of redundant programming." It remains to be seen whether such changes will benefit consumers, but recording artists will almost certainly lose royalty revenue from the decreased number of channels offered by a single, combined service.

Unlike terrestrial broadcasters, satellite radio pays recording artists and labels a "public performance royalty" each time a track is broadcast digitally. Less channels means less plays, and less money in the artists' royalty pool.