For more than two decades, satellite radio service Sirius XM has served roughly 1 in 10 U.S. audio consumers with a mix of spoken word and music programs that have gone beyond what may be available in a local community via over-the-air AM and FM stations. Since then, unlimited data plans from wireless services companies have neutered that sell somewhat, with YouTube and plethora of audio streaming apps now available in the car — the bread and butter of SiriusXM’s growth locales.
Now, the company led by CEO Jennifer Witz has introduced “a new low-cost, ad-supported subscription plan” — a move seen by Netflix, Hulo and HBO Max that some critics may argue makes Sirius XM more like Radio.
The new dollar-friendly “Skinny Bundle” subscription option is SiriusXM Play, and it is designed to bring in new users while increasing the advertising revenue for a company that has seen its stock value slide by 37% from one year ago.
The ad-supported SiriusXM option will bring “the company’s flagship audio service” at a fee of “less than $7” per month. This includes more than 130 channels “with limited ads in-car” and additional channels through the SiriusXM app.
For marketers, Play “expands on SiriusXM’s existing talk programming ad inventory to now include the previously untapped opportunity to reach consumers” within its music channels. While SiriusXM says this gives advertisers “a one-of-a-kind platform to meaningfully connect in the car and out with listeners across North America,” it further blurs the line between satellite radio and free over-the-air broadcast properties. And, while one in South Florida may not have FM access to an Adult Alternative FM, streaming via the iHeartRadio, TuneIn, Audacy or Spotify apps can bring live radio or curated playlists to the user minus the need for Sirius XM.
Wayne Thorsen, SiriusXM’s Chief Operating Officer, is confident SiriusXM Play will attract consumers. “SiriusXM Play presents us with an incredible opportunity to thoughtfully scale our audio service on the road and off to even more listeners across North America,” said Thorsen. “With Play, we can reach and engage with new, more price-sensitive listeners with a low-cost, ad-supported subscription with more than 130 channels available in-car and so much more in-app, and leverage our strengths across both content and technology as the premium audio leader in-car to deliver this compelling offering to consumers and advertisers alike.”
Currently available on a limited basis, SiriusXM Play will continue to scale in the coming months, with package pricing and further details to be announced later in 2025, the company said. Specifically, SiriusXM Play’s expansion will make the package available to nearly 100 million vehicles by the end of 2025. “Additional channels and the more advanced advertising capabilities referenced will continue to roll out over time as the offering evolves,” Sirius XM said.
Importantly, SiriusXM Play does not include exclusive artist-led music channels such as those from John Mayer, Smokey Robinson, Kelly Clarkson and Shaggy; the two channels from R-rated talk host Howard Stern; live sports play-by-play; sports league channels; and other SiriusXM signature offerings.
