Photo Credit: SiriusXM
SiriusXM has detailed some big changes that are coming for its strategic focus, shifting away from trying to capture streaming audiences to focusing on its core business—auto listeners.
SiriusXM says it is doubling down on its core automotive subscriber segment, since 90% of SiriusXM subscribers have service embedded in-car. The company will focus its resources in 2025 on increasing retention and capturing additional growth opportunities within the auto segment. “
As part of this effort, [SiriusXM] will shift marketing and other resources away from high-cost, high-churn audiences in streaming to focus on resources on core revenue-generating segments.”
SiriusXM says it will continue to highlight the value-added benefits of the SiriusXM app to its core subscribers. It will also utilize the streaming platform for automotive distribution where beneficial in support of its IP and satellite-enabled vehicles. SiriusXM is rapidly expanding access to more than two million vehicles already on the road, including several Tesla models.
SiriusXM says it will target an initial incremental $200 million of annualized savings exiting 2025 by further optimizing efficiencies in key areas across its business. SiriusXM is scrutinizing the lifetime value of subscribers, optimizing marketing efforts for higher returns, and aligning content investments with its strategic and profitability goals. SiriusXM says it will deliver around $250 million of run rate savings in 2023 and 2024.
“At SiriusXM, we are focusing on the strengths that set us apart—including our strong core subscriber base, our unique position in vehicle, 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,” adds Jennifer Witz, CEO of SiriusXM. “We have a clear path forward and are confident we can deliver for our stockholders.”
In addition to the pivot away from streaming, Wayne D. Thorsen is joining the company in the new role of Executive Vice President & Chief Operating Officer beginning December 16 to help oversee these efforts. Meanwhile Joseph Inzerillo is stepping down from his role as Chief Product & Technology Officer to pursue other opportunities. The pivot away from streaming comes after the re-launch of the SiriusXM streaming app in December 2023.