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Radio stations may get royalty reprieve

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May 8, 2007 12:00 AM (480 days ago) by Melissa Frederick, The Examiner
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After criticism from low-budget public radio stations and legislators, the Copyright Royalty Board decided to delay the start of its fee increases for broadcasting music online from May 15 to July 15. In March, the board had suggested changing the fee structure so that stations pay per song as well as an annual fee retroactive to Jan. 1.
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After criticism from low-budget public radio stations and legislators, the Copyright Royalty Board decided to delay the start of its fee increases for broadcasting music online from May 15 to July 15. In March, the board had suggested changing the fee structure so that stations pay per song as well as an annual fee retroactive to Jan. 1.

WASHINGTON (Map, News) - Local radio stations that stream content over the Internet may get a reprieve from a pending increase in royalty fees.

In March, the Copyright Royalty Board proposed a major increase in the royalty fees stations pay to broadcast music online. They suggested changing the fee structure so that stations pay per song as well as an annual fee retroactive to Jan. 1, 2007. The move, while affecting large radio stations and Internet-only broadcasters, was a particular blow to low-budget public radio stations.

Earlier this month, however, CRB delayed the deadline for implementation of the new fees from May 15 to July 15 — giving broadcasters more time to appeal the decision. Legislation recently introduced in Congress would overturn the CRB’s decision entirely.

Reps. Jay Inslee, D-Wash., and Don Manzullo, R-Ill., have introduced the Internet Radio Equality Act (H.R. 2060). The legislation would require commercial stations to pay a flat per-hour royalty fee, as well as an annual profit percentage, as they did previously.

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The figure, 7.5 percent, is similar to what satellite radio pays. Non-commercial fees would be subject to a different, lower fee structure.

“I think that they really understood that public radio should not be treated like commercial radio, as we do this as a public service,” said Stephen Yasko, general manager of Baltimore-based WTMD (89.7 FM) radio who helped lobby for the legislation. “I’m pretty optimistic.”

D.C.-based National Public Radio spokeswoman Andi Sporkin said the legislation would especially benefit stations like D.C.’s WAMU (88.5 FM), which broadcasts news content as well as musical material such as jazz and bluegrass. Sporkin did not know whether the legislation would pass before July 5, but she said NPR plans to appeal the CRB decision, which would further delay the process.

SoundExchange, the D.C.-based royalty collection agency, said the legislation means musicians will not receive the royalties they deserve.

“The idea that this bill would help small webcasters or artists is ludicrous since less than 2 percent of all royalty payments in 2006 came from small webcasters,” SoundExchange Executive Director John Simson said in a statement.

melissa.frederick@dcexaminer.com

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Comments from Examiner Readers

4:34 PM MST on Wed., Jun. 6, 2007 re: "XM backlash over Opie and Anthony suspension"

 Louie V said:
I called to cancel my subscription but was offered 30 days free until O&A come back. I took the deal, after all O&A will need listeners after they're back so smashing my radio wasn't at the top of my list. I wonder how many people were offered the same deal. By the way, who would touch those 2 ugly toads the homeless guy offended anyway...I think even the homeless guy woudn't

 156 agree | 168 disagree
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9:09 PM MST on Wed., May. 23, 2007 re: "XM backlash over Opie and Anthony suspension"

 Buffalo Jake said:
i dont get it, if you dont like something why dont you just trun whatever it is you dont like and stop messing it up for people who do enjoy it, i am a big Opie and Anthony fan i supporte freedom of speech 100% the constitution gives everone the freedom to say what they want where they want when they want and that means radio , tv, and anything eles and no one should tell me or you what to listen to, if you dont like it turn it off, i love Opie and Anthony and lil jimmy Norton PS.Opie and Anthony are not just about rape and dick jokes, they do a lot of then that

 239 agree | 176 disagree
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9:36 PM MST on Tue., May. 22, 2007 re: "XM backlash over Opie and Anthony suspension"

 Examiner Reader said:
I am in absolute shock that XM satellite radio would suspend Opie and Anthony yet they are allowed on free FM???. I have now seen it all. I pay for this stupid subscription to hear uncensored talk. Thanks XM!! If it wasn't for Opie and Anthony I would cancel tomorrow. Please fire them so I can stop paying your fees. I am an MBA, a Republican, believe in the Lord, and I also know what humor actually is. I don't belive you do. If they were serious about commiting such atrocities I would want to see them in jail however, news flash,they were joking!! They were doing what you pay them to do, shock us!! F your sponsors, I don't pay to hear commercials anyway. Whats with that? Just like cable TV. We shouldn't have to hear or watch commercials on something we pay for. We pay not to hear or watch commercials. Thats it. I'll never buy anything advertised for one year. Well, Gods Speed O & A. The publicity will serve you well. We love you, and you too little Jimmy!!!!!!

 224 agree | 223 disagree
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5:40 PM MST on Tue., May. 22, 2007 re: "XM backlash over Opie and Anthony suspension"

 SoulTheif said:
Examiner Reader, I think you're misunderstanding. The article makes it sound like O&A were wrong when in reality the companies agree that they should not be censored. "Nicky...you need to get your story straight before you post. Go to the Coffee website. They have linked themselves to the People Against Censorship site and Adameve.com have issued a statement against XM on the free speech issue which is on their website."

 223 agree | 202 disagree
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1:12 PM MST on Tue., May. 22, 2007 re: "XM backlash over Opie and Anthony suspension"

 Examiner Reader said:
Nicky...you need to get your story straight before you post. Go to the Coffee website. They have linked themselves to the People Against Censorship site and Adameve.com have issued a statement against XM on the free speech issue which is on their website.

 242 agree | 192 disagree
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9:28 AM MST on Tue., May. 22, 2007 re: "XM backlash over Opie and Anthony suspension"

 Nicky G said:
Your piece made it look like the Nashville Coffee Company and Adameve.com pulled their ads because they were upset with what O&A said, not the real reason. They don't like that XM pulled them.

 199 agree | 222 disagree
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9:03 AM MST on Tue., May. 22, 2007 re: "XM backlash over Opie and Anthony suspension"

 Examiner.com said:
What's wrong with all these people? Paid radio or not, do we really need trash on the air?

 196 agree | 245 disagree
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6:52 PM MST on Mon., May. 21, 2007 re: "XM backlash over Opie and Anthony suspension"

 I am outraged said:
This has become more of a business issue than a free speech. The real reason that Xm began a "promotion" to continue service to canceled radios. The promotion began the very day the suspension was announced. Quite a coincident. Quick prediction, SEC investigation to follow.

 231 agree | 229 disagree
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6:39 PM MST on Mon., May. 21, 2007 re: "XM backlash over Opie and Anthony suspension"

 Hard Harry Hardon said:
Let me just say this, they are fired.. Their show isn't on XM at all!! and all the commercials that they did are gone as well.. my brother worked at a radio station and when he left the station dumped everything that had his voice on it.. same as with Opie and Anthony.. I'll miss them.. and XM...

 221 agree | 250 disagree
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4:24 PM MST on Mon., May. 21, 2007 re: "XM backlash over Opie and Anthony suspension"

 Family Guy said:
I had XM for almost 4 years, and I had 3 radio subscriptions. I was greatly annoyed when they bumped the monthly price from $10 to $13, thinking that throwing in O&A + online would temper the backlash. O&A are nothing but a couple of worthless foul-mouthed hooligans, the comedy channels are mostly pro-Gay and anti-God, and the talk radio is chock full of commercials for other XM channels. I HAVE XM... why would I want to hear commercials on XM for XM??? As luck would have it, I canceled all my subscriptions just prior to the current fiasco. Be on the lookout for my XM radios on ebay... and good riddance!

 221 agree | 215 disagree
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4:08 PM MST on Mon., May. 21, 2007 re: "XM backlash over Opie and Anthony suspension"

 Andrew Samuelson said:
P.S. If you think the backlash is over, ask yourself this; how many thousands of hard-core fans, like myself, are no longer paying for XM? How long does XM want to hemorage cash? 40,000 lost subs is a loss of $6.2 million yearly, just in subs. For each fan that cancelled, there are probably 3 that took the free credit and are on the fence. If the show doesn't come back or comes back watered down, how long before they bail too?

 297 agree | 210 disagree
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3:57 PM MST on Mon., May. 21, 2007 re: "XM backlash over Opie and Anthony suspension"

 Andrew Samuelson said:
I cancelled my subscription and destroyed my XM unit in protest to the firing. I will not come back to XM unless the exec's at XM issue an on-air apology, a guarentee that O&A will be able to say what they want on their show without restriction, and the execs will support their on air talent.

 247 agree | 235 disagree
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3:48 PM MST on Mon., May. 21, 2007 re: "XM backlash over Opie and Anthony suspension"

 Had XM from Day One said:
I was a subscriber to XM since 2001 and now you guys have lost a loyal customer. Your customer service people suck, when I called to cancel my subscription he kept arguing with me for a long time. I am now a loyal Sirius subscriber for 2 reasons: Nascar Radio and No censorship guess Ill be listening to Howard now and ill be able to listen to a lot more Nascar programming then you guys ever offered.

 228 agree | 217 disagree
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3:48 PM MST on Mon., May. 21, 2007 re: "XM backlash over Opie and Anthony suspension"

 Had XM from Day One said:
I was a subscriber to XM since 2001 and now you guys have lost a loyal customer. Your customer service people suck, when I called to cancel my subscription he kept arguing with me for a long time. I am now a loyal Sirius subscriber for 2 reasons: Nascar Radio and No censorship guess Ill be listening to Howard now and ill be able to listen to a lot more Nascar programming then you guys ever offered.

 232 agree | 215 disagree
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3:45 PM MST on Mon., May. 21, 2007 re: "XM backlash over Opie and Anthony suspension"

 Examiner Reader said:
Opie and Anthony are cheap, untalented imitation "shock-jocks." They stink like the puss in a bile filled tumor.

 255 agree | 698 disagree
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3:43 PM MST on Mon., May. 21, 2007 re: "XM backlash over Opie and Anthony suspension"

 Mike H said:
I canceled my XM after hearing of O&A's suspension. I paid the $2 premium when they first came on board,and also have the option to block the channel with XM.This is the same as someone getting HBO for The Soprano's then complaining about the sexual content or violence.XM is a PAY SERVICE!!If you don't like it,BLOCK THE CHANNEL OR CHANGE IT!!

 206 agree | 204 disagree
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3:37 PM MST on Mon., May. 21, 2007 re: "XM backlash over Opie and Anthony suspension"

 XM subscriber said:
I've been a subscriber since December 05 and O&A wasn't the reason I joined. I don't like them, or their brand of humor. So, I don't listen to them. XM did promise "censorship-free" broadcasts, so those of you who subscribed for O&A have a right to be upset. It makes me cringe that my subscription money goes to pay for O&A, but, by the same token, I know that there are many XM listeners who don't like having to "pay" for Fox News Radio or America Right. That's the beauty of our country. My only other comment is that what passes for humor these days is pretty pathetic.

 220 agree | 212 disagree
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3:34 PM MST on Mon., May. 21, 2007 re: "XM backlash over Opie and Anthony suspension"

 RB said:
O & A listeners remember! The suits at any corporation don't decide to wind their watches until they see how it will effect the bottom line. The free market, in this day and age, is the final arbritrator regarding censorship. It may not be fair but get used to it.

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3:24 PM MST on Mon., May. 21, 2007 re: "XM backlash over Opie and Anthony suspension"

 Examiner Reader said:
"When did they promise that O and A couldnt be reprimanded or suspended?" --- Censorship isn't just a bleep or a dump button. It can be a silencing of a communication in part or as a whole. Had XM suspended them for criminal activity or fired them for say...not filling out an expense report properly...some corporate rule. That would be one thing. But to take action on LEGAL comments made during a broadcast on a PAID service on an EXPLICIT LANGUAGE channel that is subject to channel blocking (you didn't "accidentally" listen to O&A) is directly in opposition of "uncensored" and "unrestricted" radio as per their advertising. Whether you like the program or not, it is still censorship. Silencing their voices due to the content of an otherwise legal broadcast.

 214 agree | 219 disagree
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3:17 PM MST on Mon., May. 21, 2007 re: "XM backlash over Opie and Anthony suspension"

 Steve P said:
The statement that the fans have "Calmed Down" is laughable. They are just as angry as ever, and suspicious of the motives of XM executives as the government looks at their merger with Sirius.

 212 agree | 230 disagree
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3:16 PM MST on Mon., May. 21, 2007 re: "XM backlash over Opie and Anthony suspension"

 Examiner Reader said:
"maybe people are cancelling because their subject matter was in poor taste????" --- Not likely. The segment was actually tame compared to some of the stuff that show has done in the past (In fact the suspension is more likely one of the timing of the incident in the Post-Imus climate as opposed to the content). These cancellations definitely are in protest of what the XM listeners see as a break in trust with XM.

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3:12 PM MST on Mon., May. 21, 2007 re: "XM backlash over Opie and Anthony suspension"

 Examiner Reader said:
maybe people are cancelling because their subject matter was in poor taste????

 240 agree | 214 disagree
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3:09 PM MST on Mon., May. 21, 2007 re: "XM backlash over Opie and Anthony suspension"

 Examiner Reader said:
"Chad S said: Some reports show 40,000 to 100,000 canceled subs." I almost fell out of my chair laughing at this. You actually think this many people subscribed to XM just for O&A??? Regardless, I don't think they should be fired for saying what they did, however I do think they should be fired for not being funny and for being boring.

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3:09 PM MST on Mon., May. 21, 2007 re: "XM backlash over Opie and Anthony suspension"

 Heavy Fuel said:
"To suspend O&A or any on-air talent for comments made during the course of a broadcast is directly contrary to that promise" When did they promise that O and A couldnt be reprimanded or suspended?

 267 agree | 212 disagree
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3:07 PM MST on Mon., May. 21, 2007 re: "XM backlash over Opie and Anthony suspension"

 Heavy Fuel said:
They werent censored. There was no bleeping out of what they said. They got suspended for poor use of words and unfunny topic. Good for them. Now had they been bleeped, that would be censorship.

 213 agree | 199 disagree
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3:07 PM MST on Mon., May. 21, 2007 re: "XM backlash over Opie and Anthony suspension"

 Examiner Reader said:
The wait time for customer service at XM has went from 10 min to sometimes over an hour to cancel a subscription. The CSR's sound haggard and they admit there have been a flood of calls to cancel subs. There is a real difference in this situation that the people who listen are paying for this show and it is fairly simple to block the channel if you don't want to listen. Also it was a black homeless man who made the comments and not O&A so many of the articles written about this incident probably never even listened to the bit that caused the uproar in the first place. This is a witch hunt pure and simple. It is reminecent of the Ramone and Frunkis monster rain situation. XM is not being candid as to the number of subs lost as there has been a mass exodus in the past week. I would guess the number would easily exceed 10,000 lost subs......not a small amount by any means.

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3:05 PM MST on Mon., May. 21, 2007 re: "XM backlash over Opie and Anthony suspension"

 Stugein said:
Chance Patterson is a liar. Whether you like O&A or not makes no difference at all. At the end of the day XM still lured customers in with advertising that touted the promise of censorship-free radio. To suspend O&A or any on-air talent for comments made during the course of a broadcast is directly contrary to that promise and every XM subscriber should be holding the company accountable to that promise whether you listen to O&A or Oprah & Friends. With this action they've deceived you and every other listener who wanted something different from your standard FM drivel...their "radio revolution". If you don't mind being lied to so long as you aren't offended by something you might hear, then you are already beyond help. But if you believe that integrity and corporate responsibility still have a place in our country, then you will stand up and be counted. You will tell XM that you do not appreciate being deceived. -Stugein PS: And Bob C is a tool.

 287 agree | 186 disagree
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3:02 PM MST on Mon., May. 21, 2007 re: "XM backlash over Opie and Anthony suspension"

 Mikey-O said:
I completely disagree with rowdy and is use of the word "hullabaloo." What year is this. boring dolt.

 223 agree | 190 disagree
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3:00 PM MST on Mon., May. 21, 2007 re: "XM backlash over Opie and Anthony suspension"

 rowdy said:
this hullabaloo underlines the inanity of paying for any subscriber tv or radio. it's all crap,from HBO to XM radio. read a book.

 281 agree | 207 disagree
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2:57 PM MST on Mon., May. 21, 2007 re: "XM backlash over Opie and Anthony suspension"

 Bob C said:
If they keep these two pigs on I am going to cancel my subscription

 214 agree | 233 disagree
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2:56 PM MST on Mon., May. 21, 2007 re: "XM backlash over Opie and Anthony suspension"

 Examiner Reader said:
If you hate XM, cancel your subscription and then shut up. XM was just fine before the two idiots were on and will be fine after nobody can remember who O&A was. There are a dozen O&A types in every city in the US. You can listen to them and laugh just as hard at the non-funny stuff that O&A say. I dont care how many people cancel and I dont care if they have a board of directors meeting. O&A were not funny and I dont miss them one bit.

 288 agree | 209 disagree
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2:50 PM MST on Mon., May. 21, 2007 re: "XM backlash over Opie and Anthony suspension"

 Loyal O&A fan from Wackbag.com said:
The number of cancellations is far from small. XM is trying to bury the issue because of their upcoming shareholder meeting. The fans fought back by cancelling and are continuing to fight back on the next level by exposing XM's attempt to hide the real number of cancellations by suspending accounts instead of cancelling them. They're not getting away with it. The real word coming down is that XM plans to actually fire O&A and that this "suspension" is just a smokescreen to try and soften the blow and prevent a mass-exodus of subscribers. This situation is closely tied to the pending merger, more than many people believe. Hoo-hoo! Tell 'em Mel!

 231 agree | 202 disagree
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2:47 PM MST on Mon., May. 21, 2007 re: "XM backlash over Opie and Anthony suspension"

 Examiner Reader said:
opie and anthony sound like two feeble men with no real sense of whats funny and what isnt. rape as a device for comedy? 2 schmucks. Lets joke about women in their family being raped and see how funny it is to them.

 212 agree | 203 disagree
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2:47 PM MST on Mon., May. 21, 2007 re: "XM backlash over Opie and Anthony suspension"

 AOneDC said:
Free speech means it's not illegal to speak your mind! Your boss can still tell you what you can say on the job! If you THINK you support free speech, find out what it is first. To really exercise free speech you must also wear your big boy pants and accept the financial and social consequences. Imus can't go to jail for what he said, but the court will not give him his job back. XM can not be forced to re-instate O/A by law. Their freedom to limit what they broadcast also comes with consequences. Please stop confusing the kiddies by mixing free-to-say with employer-gotta-pay-no-matta-whatta-say.

 229 agree | 226 disagree
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2:36 PM MST on Mon., May. 21, 2007 re: "XM backlash over Opie and Anthony suspension"

 Examiner Reader said:
I don't get what everyone is upset about. You would think someone had died over this. I would suggest that everyone that is UPSET over two dumb guys getting a suspension, you need to get a life. If you like vulger language, go into your bathroom and cuss up a storm. Get over it people.

 237 agree | 238 disagree
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2:36 PM MST on Mon., May. 21, 2007 re: "XM backlash over Opie and Anthony suspension"

 Examiner Reader said:
How come they will not post the true numbers of subs cancelled so far? They are capturing that info, so it must be a real impact.

 283 agree | 235 disagree
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2:32 PM MST on Mon., May. 21, 2007 re: "XM backlash over Opie and Anthony suspension"

 Chad S said:
Some reports show 40,000 to 100,000 canceled subs.

 257 agree | 196 disagree
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2:00 PM MST on Mon., May. 21, 2007 re: "XM backlash over Opie and Anthony suspension"

 Examiner Reader said:
I urge you to correctly get all the facts. 5, not 2, sponsors have pulled out, inboxs to additional sponsors, heads of XM, congressmen, BBB & the SEC have been flooded. Of course XM is reporting low numbers, they never actually cancel your account. I have had to call 5 times and still I'm not cancelled. Plus this is great damage control for them. We have not slowed down, we haven't even begun. We will win this. Our freedom is on the line.

 235 agree | 219 disagree
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1:49 PM MST on Mon., May. 21, 2007 re: "XM backlash over Opie and Anthony suspension"

 Examiner Reader said:
the number of cancellations was small...you know why? XM didnt cancel accounts, only suspended them, to reflect the subs still being active, regardless of the request of the customer..talk about ethical business practices

 202 agree | 217 disagree
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1:49 PM MST on Mon., May. 21, 2007 re: "XM backlash over Opie and Anthony suspension"

 JohnWalk said:
The backlash is continuing. Thousands of fans have cancelled. The FCC is getting notice of our complaints. The XM execs should be getting our letters soon. Not to mention the editorials coming out today. Sorry XM this looks terrible and a statement by Chance doesn't cover this up.

 227 agree | 207 disagree
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1:31 PM MST on Mon., May. 21, 2007 re: "XM backlash over Opie and Anthony suspension"

 Examiner Reader said:
XM is faulse representing the fan base. I would invite you to take a look at youTube, Cringe Humor, Wackbag, FBA or any of the dozens of fan sites. The fans are outraged. You may get a better idea of the situation if you contact People against censorship or contact the FCC concerning complaints filed against the proposed merger. You only list 2 of the 5 advertisers that have pulled out because of the suspension.

 223 agree | 226 disagree
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