SiriusXM Changing Direction

[Barry]

Amid declining revenue, the satellite radio company indicates it will reduce its emphasis on streaming, and focus on its core business of broadcasting to vehicles' satellite radios. Apparently its efforts to add younger customers via streaming and podcasts have been disappointing. Perhaps this is due to heavy competition from the likes of Spotify, Apple, and even IHeart.

From RadioInsight
From InsideRadio

 

[MarkW]

Interesting stuff.

Reading between the lines, it sure sounds like they want to unload Pandora, which SXM's management has run poorly.

The Pandora platform should've been rebranded and integrated into SXM's streaming platform years ago, in my opinion.

Further reading between the lines, it sounds like a full court press will be made to reverse the trend of SXM disappearing from OEM infotainment systems. A fair number of base and mid-level new vehicle trims no longer include SXM direct access from the dash as a standard feature.

 

[CTListener]

With more and more people working from home, the number of commuters has fallen and should continue to fall. In-car listening wouldn't seem to be a growth generator for SXM going forward, but what do I know? I didn't realize that OEM inclusion of SXM has been declining, after all. It seems that pretty much all radio in its traditional form -- especially music radio -- has jumped the shark, and the bromide "Kids today don't know what AM is" is becoming "Young adults today don't know what radio is." Or even worse, "Young adults today know what radio is, and they don't like it because it interrupts their favorite music with news, weather, jokes and commercials." Maybe SXM can retain or even add subscribers by making its music channels completely autopilot operations -- no disc jockeys, no promos for other channels, no liners, no spoken channel IDs. After all, the channel name and number is always displayed on a screen. Every five or 10 seconds wasted on a heavily produced, sound-effect-laden promo or liner voiced by a generic VO talent is five or 10 seconds in which music could be playing.

 

[TheBigA]

Amid declining revenue, the satellite radio company indicates it will reduce its emphasis on streaming, and focus on its core business of broadcasting to vehicles' satellite radios. Apparently its efforts to add younger customers via streaming and podcasts have been disappointing.

However, they're not discontinuing the streaming. The cost of operating it will remain. It will be promoted as "value-added."

The main thing I'm reading is they're looking for more ways to use the satellite to sell advertising.

The focus will be better monetization through advertising, and it will prioritize ad tech investments that simplify campaign planning, purchasing, and measurement. Longer-term, the company plans to capitalize on its automotive expertise to launch integrated, addressable in-car ad experiences.

They need to improve revenues, and they see advertising as a way to do that. If subscribers signed up with Sirius to avoid advertising, they will be disappointed.

The Pandora platform should've been rebranded and integrated into SXM's streaming platform years ago, in my opinion.

The main reasons they bought it were to get the Pandora streaming platform and brand name. That would have been counter-productive. Then again, at the time, the Pandora name had a better reputation.

 

[MarkW]

A unified streaming platform under a common banner is what I should've said earlier. I never understood the point of keeping Pandora and SXM in their own silos on a long term basis.

Acquirers rebrand acquirees often, even when the acquiree's brand name has a favorable reputation.

 

[CTListener]

The main reasons they bought it were to get the Pandora streaming platform and brand name. That would have been counter-productive. Then again, at the time, the Pandora name had a better reputation.

Really? I thought Spotify was already the hotter platform, with the most momentum. I remember seeing the announcement greeted by a lot of derision on the boards populated by sat radio users. Very little enthusiasm, a lot of "Clueless Sirius is at least a year late to the party again." SXM gets a lot of that kind of flak, especially when it signs musical acts who are on the downslope of their careers, or at least aren't as red hot as they were a year or so previous, to host curated channels. The company just seems to lack hipness, which I guess is logical when sixty-something Scott Greenstein is the guy in charge of content.

 

[TheBigA]

A unified streaming platform under a common banner is what I should've said earlier. I never understood the point of keeping Pandora and SXM in their own silos on a long term basis. Acquirers rebrand acquirees often, even when the acquiree's brand name has a favorable reputation.

So they should have changed Sirius to Pandora. The reason they kept them separate was for revenue diversification. The thing that's killing broadcast radio is all its revenue is coming from one place. Now it seems Sirius wants to do the same thing.

 

[TheBigA]

Really? I thought Spotify was already the hotter platform, with the most momentum.

The choice Sirius had at the time was either build a streaming platform from scratch or buy one. They chose the latter.

Sirius XM Completes Acquisition of Pandora

As expected, Sirius XM Holdings today announced that it has completed its acquisition of Pandora Media, making it “the world’s largest audio entertainment company,” according to the announcement. After years of discussion, Sirius XM acquired Pandora in a $3.5 billion deal last year. Jim Meyer...

variety.com

 

[Barry]

However, they're not discontinuing the streaming. The cost of operating it will remain. It will be promoted as "value-added."

My impression is that SiriusXM may pull back from investing in expensive podcasts, and cede that to competitors, such as Spotify.

They need to improve revenues, and they see advertising as a way to do that. If subscribers signed up with Sirius to avoid advertising, they will be disappointed.

I doubt they will start running advertising on the music channels. The ad-free music has been a major selling point.
On the other hand, there have always been commercials on most of the others.

 

[MarkW]

So they should have changed Sirius to Pandora. The reason they kept them separate was for revenue diversification. The thing that's killing broadcast radio is all its revenue is coming from one place. Now it seems Sirius wants to do the same thing.

I wasn't suggesting killing off user curated, artist-based streaming.

I was suggesting placing user curated streaming on the same platform as SXM's linear and on demand channels. One stop shopping for the audio consumer, as it were.

Pandora Satellite Radio rolls off the tongue more smoothly than Sirius XM Satellite Radio, so I actually like your first idea.

 

[TheBigA]

I doubt they will start running advertising on the music channels. The ad-free music has been a major selling point.
On the other hand, there have always been commercials on most of the others.

What I get from the quote I posted is they'll use technology to put video ads on the dashboards. So you might not hear the ads in the programming, but you'd see them.

I was suggesting placing user curated streaming on the same platform as SXM's linear and on demand channels. One stop shopping for the audio consumer, as it were.

The problem with that is the "genome" Pandora uses to curate their music channels comes from the interaction it gets from streaming. That is less effective on satellite. Same thing with Sirius. It gets better user demographic information from streaming than satellite.

 

[CTListener]

What I get from the quote I posted is they'll use technology to put video ads on the dashboards. So you might not hear the ads in the programming, but you'd see them

While driving. Brilliant. Let the accidents and lawsuits begin!

 

[TheBigA]

While driving. Brilliant. Let the accidents and lawsuits begin!

Broadcast stations are already doing it.

 

[MarkW]

The problem with that is the "genome" Pandora uses to curate their music channels comes from the interaction it gets from streaming. That is less effective on satellite. Same thing with Sirius. It gets better user demographic information from streaming than satellite.

Very good info, but I wasn't referring to audio content consumption by way of satellite. Rather, I was proposing making all content from both services accessible via one smartphone app.

Right now, the Pandora app needs to be downloaded for Pandora content and the SXM app needs to be downloaded for SXM content, to the best of my knowledge.

Pandora had a large incumbent user base pre-acquisition of non-SXM subscribers. The company could've capitalized on that by cross selling SXM content & subscriptions more effectively.

 

[TheBigA]

Very good info, but I wasn't referring to audio content consumption by way of satellite. Rather, I was proposing making all content from both services accessible via one smartphone app.

The problem with platform and branding integration is that if you decide to sell part of it, you're faced with the expense of decoupling. That was one of the big expenses involved in the spinoff of CBS Radio. At the time, the radio online platform was integrated with the TV stations.

 

[MarkW]

The problem with platform and branding integration is that if you decide to sell part of it, you're faced with the expense of decoupling. That was one of the big expenses involved in the spinoff of CBS Radio. At the time, the radio online platform was integrated with the TV stations.

Excellent point.

I agree with an earlier comment that Sirius XM must not fall prone to a tunnel vision view of listening venue.

They need to tout accessibility to content in the car, at work, at home, wherever. I like their Samsung Tizen (TV) and Denon HEOS (smartphone) app integration. Sirius XM didn't always work well, though, when I used Yamaha MusicCast.

 

[TheBigA]

Maybe I'm missing it, but the one thing missing from this announcement is something having to do with programming. People subscribe to Sirius or any service for the content, and they seem more focused on their own revenue and profitability than in creating new services for subscribers. If I'm missing something, please let me know.

 

[radiofan2023]

Broadcast stations are already doing it.

Which ones?

 

[TheBigA]

Which ones?

Here are a few stories. If you have a new car, it's likely you're getting visual ads from radio:

Radio’s Visual Content Is Becoming More Important. So Is Managing All That Metadata.

Paying attention to your station’s metadata and how it looks on the more robust displays and larger screens in today’s connected cars is becoming more important. About 80% of the

www.insideradio.com

Meet The New :30 – Visual Messages, Displayed During Station Programming.

Quu, the tech company that enables radio stations to display messages and images on vehicle dashboards, has launched a new product that embeds visual advertising directly into programming in an

www.insideradio.com

Quu Partners With Xperi To Synch Messages On Vehicle Dashboards.

Ad-synch technology provider Quu and technology giant Xperi have formed a strategic partnership intended to make it easier for radio to display and monetize content in connected cars. At the

www.insideradio.com

 

[JTJoe]

Can't believe after all the time since SiriusXM merger that combined company still using both sat. systems with basically same formats. They should spin off one of the systems to someone else to use for other uses rather than radio like formats. What a waste of maintaining a separate sat system.
The "dual" band car radios never took off and are unavailable presently.