SiriusXM has experienced a significant decline in self-pay subscribers, losing 359,000 customers in Q1 2024, a larger loss compared to the 347,000 subscribers it shed during the same period last year.
SiriusXM’s revenue showed modest growth, posting $2.16 billion this quarter, a 1% increase from $2.14 billion last year. The company’s profit rose to $265 million, up from $233 million. Despite a 7% increase in advertising revenue, subscription revenue saw a slight decline of 1%.
Further impacting the subscriber base, SiriusXM saw a decrease of 86,000 paid promotional subscribers, a sharp contrast to last year’s increase of 66,000 in the same category. The company attributes this downturn to a reduction in trial starts late last year and an increase in subscriber churn at the start of this year.
Total subscriber numbers fell by 445,000 this quarter, marking a steeper decline than the 281,000 lost in the first quarter of 2023. Additionally, the company reported a loss of 64,000 subscribers from its Pandora Plus and Pandora Premium services, a significant increase from the 7,000 lost a year earlier.
During the April 30 earnings call, SiriusXM CEO Jennifer Witz acknowledged challenges with the launch of the new streaming app, which had been disruptive for some long-standing customers. However, she remains optimistic about the platform’s relaunch and upcoming product enhancements aimed at attracting a younger audience, particularly through innovations in mobile and car-based streaming.
Looking ahead, Witz discussed ongoing negotiations to integrate SiriusXM with the Liberty SiriusXM tracking stock group, aiming to complete the merger by early Q3. Liberty Media, which holds an 83% stake in SiriusXM, seeks to enhance the value proposition to investors through full control.
Another challenge on the horizon? Scott Greenstein, President and Chief Content Officer of SiriusXM Radio, addressed the possibility of replacing Howard Stern if he does not renew his contract next year. Stern has long been the face of SiriusXM after famously leaving terrestrial radio for the program, but recent deals with Conan O’Brien, Kevin Hart, and Andy Cohen could provide the next generation of star-power the broadcaster wants.
You lost me and I’m so glad. Turns out you can listen to the exact same shows for free with no commercials. Thanks for not renewing my original plan I owe ya one .