SiriusXM Sheds 445,000 Subs, Pandora Drops 64,000 in Q1 2024 — Both Accelerated Declines

SiriusXM Q1 2024 report loss subscribers
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SiriusXM Q1 2024 report loss subscribers
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Photo Credit: Dodge

SiriusXM has reported a loss of 445,000 total subscribers for its Q1 2024—a massive loss compared to the 281,000 subscriber loss from Q1 2023.

The satellite radio company shed 359,000 self-pay subscribers during the first quarter, an accelerated loss compared to 347,000 shed in Q1 2023. Paid promotional subscribers fell 86,000 compared to a gain of 66,000 in the same quarter last year. Self-pay subscribers for Pandora services fell by 64,000 in the first quarter.

CEO Jennifer Witz conceded that the SiriusXM streaming app launch has been disruptive for even long-time customers. But she adds that the service is reaching younger customers beyond automobiles. “Our early engagement metrics and other consumer signals we are following from the new SiriusXM are improving,” Witz told investors. “We are confident that our app platform relaunch and the product improvements coming in the car are putting us on the right path.”

Overall, SiriusXM posted quarterly revenue of $2.16 billion, up 1% from $2.14 billion in Q1 2023. The company recorded earnings of $265 million, or 7 cents per share, up from $233M or 6 cents per share in the same quarter of 2023. SiriusXM also points to its advertising revenue rising 7% to $402 million, offset by subscription revenue falling 1% to $1.68 billion.

Howard Stern and SiriusXM announced an agreement to continue his contract as a longstanding host with Sirius for five years in 2020—bringing up the question of what SiriusXM could look like post-Howard Stern should he decide to retire. Scott Greenstein, President & Chief Content Officer of SiriusXM told investors the company is prepared to move on, should that be on the table.

“You don’t replace someone,” Greenstein said of a potential retiring Stern. “You come up with a strategy of what is your current demo and your target audience and you look at what would be best suited for that at any given time. And we love our bench,” Greenstein continued.