SiriusXM Radio Targets 'Outside The Car'

SiriusXM's Jennifer Witz, Howard Stern

SiriusXM Radio is confident in its traditional core business and growing new areas, CEO Jennifer Witz said on Monday, according to The Hollywood Reporter.

Speaking at the virtual Bank of America Securities 2021 Media, Communications and Entertainment Conference, she said while “the car will remain the foundation of our business” that “increasingly our growth going forward will come outside of the car, with both digital subscriptions and from our ad platform.”

Asked about her biggest concerns for the business, Witz said, “I worry about a recession” or economic pullback, because SiriusXM offers “a premium subscription services – there is always a risk that customers don’t want to pay for what we are offering.”

Addressing the impact of the coronavirus’ delta variant and soft August car sales, the SiriusXM CEO said that could “pressure” subscriber trends in the current fourth quarter and, if these trends persist, in 2022. “We maintain full confidence in our subscriber and financial guidance,” she reiterated though.

Asked about concerns that the likes of Apple or Spotify could eventually enter the car segment aggressively, Witz said “we have been in the business” for 20 years, adding that the firm has faced various forms of competition, but has succeeded thanks to the ability to offer attractive content easily and be a good partner to car companies.

Digital subscribers without a car are a growing part of SiriusXM’s user base and a “big focus” going forward, Witz also said on Monday. “Our marginal economics on the digital side are fantastic and they are really on par with our satellite subscriber economics, which is very different from what you see in the interactive music space,” she highlighted. Witz also noted a current promotional campaign, focused on the theme “no car required,” that highlights the company’s “phenomenal talent.” She added that SiriusXM also wants to increase the time car users consume the firm’s content outside their vehicles.