Expect A Huge Boost In SiriusXM Subscribers After Acquiring Pandora
The face of radio is changing with more people opting to digitally stream their music. In the fast-moving tech companies like SiriusXM have to adapt and adjust to stay relevant. It looks like SiriusXM will have no problem staying afloat after sharing their earnings of $1.5 billion in a recent quarterly report. SiriusXM radio is clearly looking to expand beyond the reaches of radio in cars by acquiring Pandora in an all-stock 3.5 billion deal. It seems like their deal with Pandora is paying off and driving more subscriber traffic.
The addition of Pandora will diversify SiriusXM’s revenue streams with the U.S.’s largest digital ad-supported audio offering, broaden our technical capabilities, and represents an exciting next step to expand our reach out of the car even further.
A considerable portion of the satellite radio’s recent revenue comes from self-pay subscribers, $1.2 billion to be exact. At the end of the quarter, SiriusXM experienced a boost of 289,000 subscriptions which means they now average a total of 33.7 million subscribers. Before the deal with Pandora, SiriusXM’s subscriptions were dropping most likely due to low car sales and millennials seeking out streaming services like Spotify or Soundcloud. Even though Pandora was losing users, they still had a strong subscriber list with over 6 million customers paying for their service.
According to Billboard, a close integration with Pandora would allow SiriusXM a high-quality free radio alternative to offer trial users. It’s also a way to keep those users on board in their customer pool. While Pandora and SiriusXM are enjoying the benefits of cross-promotion, a new path to have a euphoric listening experience is available for users willing to subscribe.