SiriusXM, the audio entertainment giant, has reported a loss of 96,000 self-pay subscribers in its satellite radio unit during the third quarter. While this represents a narrower decline compared to previous quarters, it is a significant drop compared to the year-ago period, when the company added 187,000 customers.
Additionally, SiriusXM added 2,000 paid promotional subscribers, resulting in a total net drop of 94,000 subscribers in the latest quarter. As of September, the year-to-date satellite radio user drop stood at 336,000. Despite this, SiriusXM’s self-pay subscriber base still stood at over 31.8 million, with total users just below 34.0 million.
The company anticipates a “modest” user drop for the full year 2023 due to economic and car industry challenges. This comes as no surprise, as the pandemic has had a significant impact on various sectors, including the audio entertainment industry.
In its Pandora streaming business, SiriusXM reported a loss of 112,000 subscribers in the third quarter, compared to a loss of 52,000 in the year-ago period. However, the quarterly advertising revenue in the Pandora and Off-Platform unit was $418 million, up 3 percent from the year-ago period and up 5 percent from the second quarter of 2023.
Despite these challenges, SiriusXM’s overall third-quarter revenue reached $2.27 billion, slightly down from the year-ago period. Earnings also saw an increase from $247 million, or 6 cents per share in the year-ago period, to $363 million, or 9 cents per share.
Looking ahead, SiriusXM is planning to unveil a new streaming app next week, targeting younger and more diverse audiences. The company believes that this new streaming experience will be the “cornerstone” of its long-term strategy, while in-car subscribers will continue to drive near-term growth.
In an effort to reach a broader audience, SiriusXM has partnered with TikTok to launch TikTok Radio as a full-time music channel. This collaboration aims to engage younger and more diverse listeners.
Lastly, the company’s CFO has indicated that a special committee of the board is considering a proposal from Liberty Media, which aims to combine the Liberty SiriusXM tracking stock group with the satellite radio giant. If this proposal goes through, it would result in the formation of a new publicly traded company.
Despite the challenges faced by SiriusXM, the company remains committed to developing innovative strategies and partnerships to enhance the overall user experience and reach new audiences. With the launch of the new streaming app and the collaboration with TikTok, SiriusXM is positioning itself for future growth and success in the audio entertainment industry.
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