Even as the company continued its wide-scale rebranding campaign, SiriusXM marked another quarter of subscriber loss. The satellite-turning-podcasting giant recorded a Q2 2024 revenue of $2.18 billion, marking a 3% year-over-year decrease.
The steady financial performance also saw net income saw a modest rise to $316 million compared to $310 million in Q2 2023. The total revenue for SiriusXM’s segment in the second quarter was $1.6 billion, reflecting a 5% decrease year-over-year, which was attributed to a reduction of 100,000 self-pay subscribers due to higher vehicle-related churn and fewer streaming additions.
Additionally, the count of paid promotional subscribers decreased by 73,000. The total trial subscribers stood at 7.4 million, slightly down from 7.5 million in both the previous quarter and the same quarter last year. SiriusXM CEO Jennifer Witz reported a grand total of 33 million subscribers.
Pandora and Off-Platform segment showed a revenue increase of 2% to $538 million, with steady advertising revenue and a significant increase in subscriber revenue. This segment’s gross profit rose by 18% to $180 million, improving the gross margin to 33%, up four percentage points from the previous year.
Witz said, “We remain focused on delivering for our listeners and our investors, leveraging our position in audio to innovate and explore new avenues for growth. By pairing the unique voices and perspectives across music, sports, and politics from our unparalleled live programming with new features and subscription packages, we are poised to capitalize on the opportunities ahead.”
Those opportunities include some bold shifts. While continuing to launch new channels through artist partnerships, the company is introducing Free Access, a free, ad-supported service in select vehicles equipped with SiriusXM’s 360L next-generation entertainment system.
SiriusXM is also launching Podcasts+, a new subscription service within Apple Podcasts, providing a premium experience for users across the US, Canada, and more than 50 other countries. Starting August 5, Podcasts+ subscribers can get ad-free episodes, exclusive content, and early access to new episodes from SiriusXM’s podcast library for a monthly or annual fee. Additionally, the service will include podcast transcripts to aid navigation and make episodes accessible to the Deaf and hearing-impaired.
Shows included in the initial offering are Last Podcast on the Left, the Freakonomics Radio Network, The Joel Osteen Podcast, Literally! with Rob Lowe, and Andy Cohen’s Daddy Diaries Podcast. The crown jewel of Podcasts+ is Will Arnett, Jason Bateman, and Sean Hayes’ SmartLess, which SiriusXM nabbed from Amazon for nine figures in January.
SiriusXM Podcasts+ will extend to existing SiriusXM subscribers through the SiriusXM app.
SiriusXM President and Chief Content Officer Scott Greenstein said, “As the leading audio entertainment company in North America, we are excited to expand our audience reach with the launch of SiriusXM Podcasts+. This new offering gives podcast enthusiasts the chance to subscribe to premium content from some of the most popular podcasts on our network, right through Apple Podcasts. This allows us to reach new listeners, increases value for creators looking to engage fans, and facilitates our ability to add premium content to our flagship SiriusXM app and enhance the value of our core subscription.”
