After a disappointing venture into streaming, SiriusXM is pivoting its strategy to focus on gaining ground in terrestrial radio. During its Q1 2025 earnings call, CEO Jennifer Witz emphasized the company’s plan to target AM/FM audiences directly, positioning SiriusXM as a compelling alternative in the in-car listening market. “We have a real opportunity here to take share from AM/FM with the right price points and packages,” Witz said.
This new approach comes as the company scales back its investment in streaming-only subscriptions. CFO Tom Barry acknowledged that previous efforts in that area fell short, leading to reduced marketing spend on those products. Instead, SiriusXM will now prioritize expanded access through embedded technology and revised pricing structures, particularly in vehicles.
A major part of the shift includes a forthcoming ad-supported subscription tier. This option will offer limited content for a lower monthly cost and will begin testing later this year. COO Wayne Thorson shared that the introductory price will be in the high single digits and available from launch in nearly 100 million vehicles. The company aims to grow its base without undercutting its existing paid tiers.
To support this strategy, SiriusXM will also continue enhancing its Free Access offerings, giving non-subscribers periodic access to premium events like the Chris Stapleton Radio broadcast. These initiatives are designed to lure listeners away from traditional radio, which, according to Edison Research, still dominates in-car listening with a 90% share of ad-supported ear time.
Despite a 4% drop in total revenue to $2.07 billion and a net income decline to $204 million for the quarter, SiriusXM’s leadership expressed optimism. The company reported a self-pay net subscriber loss of 303,000, an improvement over the same period last year, and a churn rate decrease of 18 basis points to 1.6%.
Witz credited this improvement to decreased cancellations and better retention despite a price hike in March. “We really haven’t seen anything to give us any pause,” she said. Barry echoed that confidence, noting, “We’re staying vigilant… but we feel great about our ability to generate long-term sustainable value for shareholders across a variety of economic environments.”
SiriusXM is betting that by targeting terrestrial radio users directly, it can recapture momentum and stabilize its subscriber base for the future.