SiriusXM CEO: 'We’re in the radio business, not music distribution'

SiriusXM CEO James E. Meyer this week spoke with CNBC’s David Faber about the company’s decision to acquire Pandora for $3.5 billion in September 2018

“I’m more excited about the opportunity of Pandora today, as I dig deeper into it because I see the opportunity,” Meyer told CNBC’s David Faber. First, he sees advantages to take $5 and $10 Pandora subscriptions—“which in themselves are not very profitable—and bundle them in a way with our existing 33.7 million [SiriusXM] subscribers, and give them a better value that will make them more sticky.” He added, “We haven’t figured it all out yet but I think you should assume it’s going to be a better value if you bought [subscriptions] together rather than separate.”


SiriusXM CEO: We’re in the radio business, not music distribution from CNBC.


Meyer said that SiriusXM founded its business on subscriptions, where 96% of its revenue is derived. Meanwhile, 70% of Pandora’s revenue comes from advertising. “The ability to have both across that spectrum is a really important tool.”