SiriusXM launches cheaper ad-supported plan
SiriusXM launches cheaper ad-supported plan
In a lesson learned from video streaming services, the satellite radio company is now offering an ad-supported product.
A good idea is a good idea, as SiriusXM sees it. The satellite radio giant is taking some inspiration from the biggest streaming services on the market in the United States, deciding to launch a new, ad-supported plan at a cheaper price than its traditional subscription offerings. The move will ideally lure more customers to the service and will also allow SiriusXM to open a new revenue stream, while attempting to compete with streaming music giants like Spotify, Apple Music, and Amazon Music.
Key Details:
- A good discount: SiriusXM’s ad-supported plan will cost less than $7 per month.
- Less than standard: The company promises to offer around half the ads that traditional radio carries.
- Video leads the way: SiriusXM no doubt took its lead from video streamers who have had success with ad-supported plans.
The new ad-supported plan from SiriusXM is called SiriusXM Play. It is rolling out now, and the company promises it will be available in nearly 100 million vehicles by the end of this year. It will offer more than 130 music, sports, news, and talk channels in-car or on the SiriusXM app, and cost less than $7 per month.
SiriusXM says the plan will have around half the commercials that normal over-the-air radio comes with. The company’s talk radio channels have played ads for a while now, but this will be the first time commercials are introduced to its core music channels as well. Ad-free SiriusXM plans cost anywhere between $10 and $25 per month.
“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,” SiriusXM COO Wayne Thorsen said. “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.”
The company has no doubt observed the success of video streaming services in launching ad-supported plans. These packages allow companies to collect both subscription revenue and ad money, and recent data from Hub Research shows that the number of customers who are willing to accept ads with formerly ad-free services has continued to rise.
This isn’t the only streaming-adjacent move made by SiriusXM in recent months. In May, the company announced it was bundling with Fox Nation for $12 per month, allowing consumers to combine radio and video streaming into one monthly bill. SiriusXM is trying to ensure its future and has used inspiration from video services to make moves toward that goal.