SiriusXM’s Sat Radio and Pandora Subscribers Decline by 445,000 and 64,000 respectively

SiriusXM, the popular audio entertainment giant known for hosting Howard Stern, faced a setback in the first quarter of this year. The company reported a loss of 359,000 self-pay subscribers in its satellite radio unit, marking a decline from the previous year’s loss of 347,000 subscribers. This drop was attributed to fewer trial starts in late 2023 and higher first-quarter churn rates.

In addition to the self-pay subscriber loss, paid promotional subscribers also decreased by 86,000 customers, compared to a gain of 66,000 subscribers in the same category last year. Overall, SiriusXM experienced a subscriber drop of 445,000 in the first quarter, a significant increase from the 281,000 drop in the same period of 2023.

CEO Jennifer Witz addressed the challenges faced by the company during a morning analyst call, acknowledging that the launch of the new SiriusXM streaming app for longtime customers had been disruptive. However, she expressed confidence in the company’s ability to innovate and reach younger subscribers beyond cars. Witz highlighted that early engagement metrics and consumer signals from the new app were showing improvement, indicating a positive trajectory for the company.

Despite the subscriber losses, SiriusXM reported quarterly revenue of $2.16 billion, a 1% increase from the previous year. The company’s earnings also saw growth, with $265 million, or 7 cents per share, compared to $233 million, or 6 cents per share, in the same period last year. While advertising revenue rose by 7%, subscription revenue fell by 1%, balancing out the overall financial performance of the company.