Sirius XM Radio generated record revenues of $940 million and $126 million in profit during the second quarter. CEO Jim Meyer said, “Sirius XM’s second quarter results reflect record performance on almost every vital metric: the 25 million subscriber milestone, record revenue, adjusted EBITDA and adjusted EBITDA margin.”
The satellite radio company obtained 716,000 subscribers in the past quarter, bringing the number up to a total of 25.1 million, a 9% increase since the last year period. Paying subscribers reached 20.3 million, also a 9% increase over the past 12 months.
by Priscilla Kim
Don’t believe they are charging enough for a subscription. They can probably get away with charging $9 or $10 a month and finally pay artists and labels the SoundExchange rate. Maybe even pay the Rhapsody rate.
Not sure I understand your comment. SiriusXM subscriptions range from $14.49 to $17.99 a month.
http://www.siriusxm.com/ourmostpopularpackages-sirius
Sorry. I meant to say ” an extra $9 to $10.”
I don’t think we will see any increases for a while. Not with the amount of people already playing the cancellation game. Their unrivaled dominance in the automobile has become a battle zone thanks to 4G bringing in Pandora, Slacker, Spotify, iHeart, etc. Now they have to compete with services that are cheaper, customizable, and have way better sound quality. Plus they will lose Howard before long, which will weaken the value of their offerings greatly and cost them by some estimates as many as 4mil subscibers. Unique, exclusive content is what made them the most value company in radio.
I can solve their problem if Howard leaves and subscriptions increase by $10: an Yves Villeneuve music-centric channel.
Trying to solve the problem, not bankrupt the company.
But 24% of Yves listeners love Yves music. Are you really willing to bet against those odds?
Agreed. There’s too much competition for any price increase – $14-$18/month is already the highest in the industry. Howard isn’t going anywhere for a long time, and as long as he’s around they can justify their premium subscription rates. But I think we’ll see pushback from subscribers if the rates go much higher.
Sorry, I wholeheartedly disagree.
What’s interesting is that they have 4.8M NON-paying subscribers. That a huge churn potential.
They have always had non-paying subscribers. They have a huge amount of active trials.
XM is one of the few fair links in music business!
That 940 makes 3.8 billion / yr and this makes $12+ per month.
Great result considering that you get discount for multiple accounts or for the fact that you remove Howard!
They also have perfect (iTunes / CD) demographics to convert them to first radio music retailer.
So why does it work?
Because it can’t be downloaded for free illegally.