SiriusXM launches an ad-supported subscription plan for car listening called SiriusXM Play, priced at less than $7 per month for in-car and streaming. The company aims to tap into advertising to boost revenue, retain customers, and compete with other audio options. The plan will reach nearly 100 million vehicles by 2025, featuring music, sports, news, and talk show offerings. Howard Stern and exclusive channels remain ad-free, with commercial-free packages ranging from $9.99 to $24.98 per month. SiriusXM is also focusing on its streaming app and Pandora service.
SiriusXM targets drivers who don’t renew after a free trial, launching an ad-supported plan at a cheaper price point to attract more long-term customers. The company experiments with ad-supported models to convert trial users into paid subscribers, drawing parallels to Netflix’s strategy shift for growth and profitability. With competitive pressures from Spotify and Apple Music, SiriusXM emphasizes its strength in the car and in-car subscriptions, which make up 90% of its customer base. CEO Jennifer Witz leads the company’s focus on its core audience segments and unique content offerings.
SiriusXM reports a decrease in subscribers and gross profit for the first quarter of 2025, with a focus on in-car subscriptions as the core revenue driver. The company aims to super-serve its core audience with exclusive content, while shifting resources away from high-cost streaming audiences. Advertising revenue plays a significant role in SiriusXM’s business, with total ad revenue reaching $1.8 billion in 2024. The company continues to adapt its strategy to drive growth and profitability amidst competitive pressures in the audio entertainment industry. SiriusXM introduces ad-supported subscription plan amid weak advertising market. Traditional ad market soft due to macroeconomic challenges, worsened by Trump’s trade policies. Scott Walker, SiriusXM’s chief ad revenue officer, calls current environment “unpredictable.” Many companies disrupted by tariff noise and supply chain issues. Insights from CNBC PRO available.
Read more at CNBC
1. The U.S. economy added 943,000 jobs in July, beating expectations and lowering the unemployment rate to 5.4%.
2. Apple became the first company to reach a $2 trillion market cap, fueled by strong iPhone sales and robust services revenue.
3. The FDA granted full approval to Pfizer’s Covid-19 vaccine, potentially boosting vaccination rates and curbing the spread of the virus.
4. Amazon announced plans to hire 55,000 workers globally, highlighting the continued growth of e-commerce and logistics industries.
5. Tesla’s stock surged after the company announced plans to split its shares, making the stock more accessible to retail investors.: Sirius bets on advertising to capture new listeners