Yesterday satellite radio broadcaster SiriusXM revealed their most recent growth figures which show massive subscriber and revenue gains in 2016 so far.
Sirius XM Holdings announced that they’ve seen a giant net growth of 587,000 new subscribers in the second quarter of 2016, that’s only 3 months. These levels of new customers are similar to the growth of giant music streaming services Apple Music and Spotify, showing SiriusXM has fast become a major player in online music.
This subscriber growth puts their total subscribers at over 30 million, and taking into account the 5 million free trial users puts their total paid subscribers at roughly 5 million. This greatly surpasses Apple Music who have roughly 15 million subscribers and brings them close to the world’s most popular streamer Spotify’s paid user count of 30 million.
This growth has been brilliant for SiriusXM’s revenue which has seen a 10% increase year-on-year. Their revenues now stand at an impressive $1.2 billion with stocks rising so far this week thanks to the reported success of Sirius radio. FactSet analysts even predict that the company should expect about $4.97 billion in revenue at the end of 2016.
SiriusXM CEO Jim Meyer said in a statement: “SiriusXM’s second quarter results demonstrated continued strong demand for our content bundle and solid execution by our entire team. We grew net new subscribers by 587,000 in the second quarter, and our subscriber base, revenue, adjusted EBITDA, and free cash flow have never been higher. We are pleased to once again raise our key guidance metrics for the full year.”
SiriusXM’s majority shareholder Liberty Media are no doubt thrilled with their growth. Liberty are also looking to expand their reach in the online music marketplace with rumours suggesting they plan to attempt to require Pandora, the most popular radio streaming service that has built a giant user base in America. Pandora has however seen user numbers dropping which could entice them into a sale.