SiriusXM’s new plan brings ads to its music, talk, and sports programming- expanding the company’s subscription offerings.

A new tier for listeners

SiriusXM is launching the company’s first ad-supported tier and at a cheaper cost, according to Variety. Priced at “less than $7” a month, the new offering is at least $3 cheaper than its entry-level options. With it, it brings “limited-ads” to its listeners spanning over 130 channels including music, talk, comedy, news, and sports.

Currently, SiriusXM offers both an in-car music-only subscription and an app-only All Access version for $9.99, alongside a monthly $24.98 All Access plan.

A response to shifting habits

Despite reaching 160 million listeners every month across its platforms (including Pandora, SoundCloud, its SiriusXM Podcast Network, and more), the company has seen subscriber losses in recent years. Traditional radio is in decline, and SiriusXM has found itself in a troubling position as it has one foot in satellite radio and the other in streaming.

This new tier could be a play to reverse that trend. It offers a cheaper entry point to reach new listeners through its music channels in what SiriusXM believes is a “previously untapped opportunity”.

A strong demand for ad-supported music streaming?

Earlier this year, MIDiA Research revealed to us that ad-supported music subscriptions don’t have the same appeal as their video counterparts. People are used to ads on TV platforms, and so this can cross into streaming on platforms like Netflix or Amazon Prime, but music is different. Once you pay, you expect it to be ad-free listening.

That said, SiriusXM could be an exception. Its unique market position of part radio, part streamer, means that ads are more accepted by its user base. SiriusXM isn’t just about albums and playlists- it’s also about personalities, sports commentary, and live content. Ads in a more radio-like context might feel more normal.

When and what’s next?

SiriusXM Play is available now to a limited audience and will roll out more widely in the coming months. More details, including exact pricing and availability, are expected later this year.


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