SiriusXM continued to see struggles in its subscriber-based business, with the company losing 314,000 customers during its third financial quarter of the year.

The premium audio service ended the quarter with around 31.5 million subscribers, a 1 percent decline compared to the prior year.

Revenue attributed to SiriusXM’s satellite and streaming radio product was $1.63 billion during Q3, while average revenue per user (ARPU) came in at $15.16. Both were down compared to Q3 2023.

The company said higher subscriber churn coupled with ongoing softness in the advertising market was to blame for its Q3 earnings report.

On a conference call with reporters, SiriusXM CEO Jennifer Witz tried to reassure investors by saying the company had completed its transformation as one that is fully independent, after combining its common stock with several tracking stocks operated by Liberty Media.

Witz said SiriusXM is now working to “reintroduce our business to the market, showcasing the actions we are taking to stem and reverse recent subscriber declines and enhance free cash flow generation.”

That includes setting a long-term target to grow its customer base to 50 million and achieve $1.8 billion in cash flow, Witz said.

To that end, the company recently introduced a new pricing structure for its flagship satellite radio service, which starts at $10 per month for dozens of commercial-free music stations, then goes up in price as customers tack on optional news, sports and talk channels for separate fees.

For cost-conscious radio fans, SiriusXM also has a streaming-only plan that allows customers to get access to more than 400 linear music, news, talk and sports stations for $10 per month.

Related: SiriusXM introduces new pricing structure for satellite service

Witz said the introduction of the new pricing structure should allow SiriusXM to eventually move away from discounts. That will likely include a retention rate that SiriusXM has long offered to customers who call and threaten to cancel their service — a rate that was intended to reduce churn, but has been exploited by some long-time subscribers in order to save money off the normal retail cost of SiriusXM’s satellite and streaming services.

SiriusXM is also trying to get its brand in front of more potential subscribers by partnering with other service-based offerings. The company recently introduced an offer that allows Walmart Plus subscribers to get six free months of SiriusXM’s streaming radio plan; last month, SiriusXM also unveiled a partnership with the Walt Disney Company’s sports-inclusive streamer ESPN Plus that offers reciprocal free trials to new and existing customers of both services.

While subscriptions have generated the bulk of SiriusXM’s revenue for several years, the company has also invested heavily in building out its ad-based products, including podcasts.

That investment hasn’t materialized the way SiriusXM thought it would, and it could take a while longer before it does: On the conference call, Witz affirmed that SiriusXM’s ad business has experienced pressure from the market shifting their budgets toward connected TV platforms — namely, streaming video services — as new entrants like Netflix and Prime Video offer increased opportunities for brands to target digital consumers.

Witz also said SiriusXM’s ad business was impacted by “a truncated election cycle and lower-than-expected podcast inventory.”

For this reason, SiriusXM revised its advertising revenue forecast for 2024 by $75 million.

“While we aren’t happy with these near-term numbers, I want to reiterate our confidence in our advertising business and the long-term potential it has to support growth of the company,” Witz said.

To that end, Witz noted several programming-related milestones achieved this year, including a multi-year partnership with Alex Cooper’s Unwell Network, which includes the popular podcast “Call Her Daddy.”

During Q3, SiriusXM’s overall company revenue — which includes SiriusXM radio, Pandora and various podcast businesses — was $2.17 billion, down 4 percent compared to the prior year, which Chief Financial Officer Tom Barry attributed to higher subscription churn. Advertising revenue across SiriusXM’s businesses was $450 million, down 2 percent.

SiriusXM’s stock price dipped by about 2 percent on the day of its earnings release, only to fully recover on November 1, one full day after its Q3 report.