Photo Credit: Philipp Katzenberger
SiriusXM has revealed it lost more than 170,000 subscribers in the second quarter of 2024—losing 100,000 self-pay and 73,000 promotional subs.
The radio giant attributes the results to “lower voluntary churn and higher automaker volumes, which were partially offset by higher vehicle-related churn and lower vehicle conversion rates and streaming net additions. The loss of subscribers comes as SiriusXM automakers shift toward unpaid trial subscriptions. In Q2 2024, the company recorded a gain of 39,000 subscribers.
Pandora also lost subscribers too, shedding 41,000 in Q2, while Pandora gained 8,000 in Q2 2023. As of the end of Q2, Pandora reports under six million self-pay subscribers for its streaming music service. Despite the drop in subscribers, SiriusXM says Pandora’s quarterly ad revenue was $528 million, which is a 2% rise compared to year-over-year. SiriusXM’s total Q2 revenue was $2.18 billion, down 3% compared to the same quarter last year. Net income reached $316 million.
“Programmatic remains a strong growth channel for us, up 10% overall from the second quarter of 2023 and up nearly 60% in podcasting,” says CEO Jennifer Witz. “With the adoption of industry Identity Solutions Unified 2.0 with the Trade Desk this quarter, we are unlocking even more programmatic capabilities. This reflects the broader trend toward greater automation and data-driven advertising, where we have established a leading position.”
SiriusXM also announced today that it is branching out its paid podcasting subscription to Apple Podcasts, offering iOS users access to a bevy of podcast content (and subscription revenue) for an entirely new audience outside the SiriusXM subscription bubble.
Chief Content Officer Scott Greenstein said earlier this year that SiriusXM is poised and in a position to pivot should Howard Stern retire soon. “You never want to be a company without Howard. And if he decides to retire or do whatever he does, that’s his choice. But as far as replacing—you don’t replace someone, you come up with a strategy based on what is your current demo and target audience, looking at what would be best suited for that at any given time.”
In 2020, SiriusXM extended its contract with The Howard Stern Show for five years, giving them until 2025 for a contract renewal. Will Stern draw the same listening power now that Gen Z are young adults? Howard Stern is a 70-year-old man who may have a star-studded broadcast past, but he is not drawing in a new audience in the under 40 crowd. The males now listen to Joe Rogan, while the females have pivoted to Call Her Daddy.
