SiriusXM is haemorrhaging subscribers in 2024
SiriusXM are losing hundreds-of-thousands of subscribers, but it may not be as bad as it sounds as they reshape their service.
SiriusXM are facing a changing industry. As the on-demand streaming continues to grow, the popularity of traditional radio has dwindled. SiriusXM sits in a strange place where radio and digital platforms meet, and years-long subscriber losses tell of their fading relevancy.
SiriusXM reported a loss of over 170,000 subscribers in the second quarter of 2024. The company attributed this decline to a combination of factors including increased vehicle-related churn and lower conversion rates from trial subscriptions.
Whilst facing subscriber headwinds, SiriusXM is actively pursuing growth opportunities. The company announced its expansion into the paid podcasting subscription market by launching on Apple Podcasts. This strategic move aims to diversify revenue streams and tap into a new audience.
Last year, SiriusXM began shifting their offerings to catch up with changing cultures. The company revealed a new app with a refreshed design in November 2023, optimising the experience with personalisation and a more streamlined focus on music and podcasts. At the same time, they launched their Streaming All Access Plan, for an out-of-the-car experience.
Additionally, SiriusXM is bolstering its advertising capabilities through programmatic advancements. CEO Jennifer Witz highlighted the company’s strong growth in programmatic advertising, particularly in the podcasting sector.
However, SiriusXM’s content remains fragile. The looming retirement of iconic host Howard Stern casts a shadow over the company’s future. While SiriusXM has secured Stern’s services until 2025, questions remain about the company’s ability to maintain its audience without the controversial figure who pulls in significant listeners.
The radio giant’s music streaming subsidiary, Pandora, also experienced losses, shedding 41,000 users in Q2 2024. Pandora ended the period with 6 million subscribers. However, the service reported 2% gains in revenue on the same period last year. This suggests ongoing growth as the company reported $2,098 million in revenues for 2022, growing to $2,113 million in 2023. 25% of that comes from subscriber revenues and 75% is advertising revenue.