SiriusXM posted fourth quarter (Q4) results that beat Wall Street expectations on Thursday, but its full-year earnings report revealed the company still has a considerable amount of work to win back subscribers and capitalize on them.
During 2024, SiriusXM earned $8.7 billion from its flagship satellite radio service, companion streaming audio platform, music service Pandora and podcast businesses. The figure was down 3 percent compared to 2023, and was attributed to a reduction in income from subscriber fees.
For Q4, SiriusXM earned $2.19 billion across its service and product line, a dip of 4 percent. Its flagship satellite and streaming radio product accounted for most of that income, with revenue attributed to SiriusXM radio clocking in at $6.6 billion, down 4 percent. The lower revenue was attributed to “a smaller average base of self-pay subscribers,” even though SiriusXM added 149,000 self-pay customers during Q4.
For the full year, SiriusXM’s subscriber count was down by 296,000, which the company said was “an improvement” over the 445,000 subscribers it lost during 2023. Self-pay subscriber clocked in at 31.64 million, down 1 percent compared to the prior year, while paid promotional subscribers were 1.58 million, down 18 percent.
At Pandora, the company ended 2024 with 43.34 million customers, down 6 percent compared to the 46.03 million reported in 2023. Revenue attributed to Pandora was $2.15 billion, an increase of 2 percent, while advertising increased to $1.6 billion during the year. Pandora and off-platform profit was $705 million due in part to a reduction in costs and expenses associated with delivering the product to customers, SiriusXM said.
Last month, SiriusXM CEO Jennifer Witz said the company was reorienting its most-lucrative business — the satellite and streaming radio product — by focusing on in-car subscribers, who are less likely to churn out.
Part of that strategy also involves a revised price structure that will see most satellite customers paying $10 per month plus taxes and fees for access to the company’s line-up of commercial-free music stations, with the option to add news, comedy, sports and entertainment-based channels for separate fees. Streaming customers will continue to have an all-inclusive plan that offers channels and podcasts for about the same price.
“At the end of 2024, we took significant steps to refocus on SiriusXM’s core strengths and enhance operational efficiency,” Witz said in a statement on Thursday. “By prioritizing our core in-car subscription business, leveraging our streaming capabilities, and growing our leadership in ad-supported audio, we are well-positioned to deliver long-term value. Looking ahead, we are energized by the opportunities to build on this strategy and continue offering unparalleled audio experiences through our platforms.”
