SiriusXM Targeting Millennials, Younger Demos

SiriusXM announced Wednesday that it will launch a revamped app and a newly priced streaming plan as it pushes to attract younger customers.

The company will launch the offerings on Dec.14, first on streaming, and later in car interfaces. It will price the new plan at $9.99 per month.

“Our growth audience is millennials and younger, who are willing to pay for an experience,” CEO Jennifer Witz said during an event Wednesday where the company unveiled the new services.

The satellite radio company, home to big-name hosts like Howard Stern and Andy Cohen, is hoping its new app interface will make the millennial and younger generations, many of whom are used to Spotify or Apple Music, feel right at home. The move comes as Sirius looks for a jolt to pull it out of stagnant sales and a 20% decline in its share price this year.

Jennifer Witz

Listeners will now have “always-on” curation and a personalized library featuring four new stations on the app landing page: Music, Talk & Podcasts, Sports, and For You. The app will also bring features like enhanced search, improved podcast listening and greater content discovery, the company said in a press release.

“The current app only put our radio on the phone,” Chief Product and Technology Officer Joe Inzerillo told CNBC. “This new app will offer more which will then be mirrored in the car.”

SiriusXM has shed subscribers recently, as it reported a loss of 94,000 satellite radio subscribers in the third quarter.

The company is also simplifying its pricing structure, offering its new Streaming All Access Plan for $9.99 a month, a dollar cheaper than its current all-inclusive streaming plan. The cheaper price tag is another bid to attract millennial and younger customers, who may already pay for another streaming service.

“We see this as a supplemental product,” Witz told CNBC on Wednesday. “We know people already have a separate music library, but we’re here for discovery.”

Morgan Stanley analysts believe the changes could help the company bring in younger listeners.

“We see the opportunity for the new product to help broaden the base, to younger, more often streaming-only consumers,” they said in the note Thursday. “The newly announced $9.99 per month price point may help. We note the product will have to compete against stiffer competition (e.g., Spotify, Apple, Amazon) relative to its in-car product vs. AM/FM radio.”

The company also continues to make headway on its satellite radio compatibility in new cars. Select-model 2024 Polestar vehicles will come equipped with SiriusXM 360L technology, which combines satellite and streaming features, the company announced Wednesday.