At the end of 2023, SiriusXM revealed a revamped brand and app as CEO Jennifer Witz announced a heavily streaming-focused strategy to capture new – and ideally younger – subscribers. One year later, that push appears to have fallen flat as the company redirects.
SiriusXM now says it is “doubling down” on its automotive subscriber segment, which represents 90% of its current subscriber base. Resources will shift toward retaining high-value automotive users, while the broadcaster, “Will shift marketing and other resources away from high-cost, high-churn audiences in streaming to focus resources on core revenue-generating segments.”
This presumably brings SiriusXM’s “Closer” national brand campaign, made by Uncommon Creative Studio, to its close. Marketed during high-profile events like the 2024 Academy Awards and Taylor Swift’s Eras Tour film, the campaign was aimed at Millennial and Gen Z audiences and pushed the company’s mobile app.
With the re-focus on cars, SiriusXM’s streaming services will now be pitched as one of the company’s “value-added benefits” to its core subscribers. This strategy is aligned with expanding digital distribution through platforms like the company’s own 360L in-car platform and recent expansion into Tesla’s operating system.
No word was mentioned of SiriusXM’s Free Access service, an ad-supported subscription plan unveiled during its Q2 earnings call. Designed to compete with AM/FM radio, the plan offers access to select music, talk, sports, and comedy channels without requiring financial information for sign-up to users with 360L hybrid receivers.
On the content side, attention will continue on exclusive content, including human-curated music channels, live sports, talent, and a growing podcast network. Meanwhile, SiriusXM plans to enhance ad-based experiences across its portfolio, leveraging its leadership in ad-supported audio via Pandora and podcasting. The company is also exploring first-to-market in-car addressable ad solutions to capitalize on its automotive expertise.
In its announcement, SiriusXM declared $350 million in cost savings through 2024 and is targeting an additional $200 million in annualized savings by 2025. SiriusXM expects total revenue of $8.5 billion in 2025. Additionally, the company plans to reduce its debt by $700 million in the new year.
SiriusXM CEO Jennifer Witz stated, “At SiriusXM, we are focusing on the strengths that set us apart – including our strong core subscriber base, our unique position in vehicles, and our unrivaled, curated content – and taking steps to drive profitability and cash flow as we face marketplace headwinds impacting the company’s growth trajectory. We have a clear path forward and are confident we can deliver for our stockholders.”
