SiriusXM Hits Record-High 34.9 Million Subscribers in 2019

Company adjusts 2019 guidance for revenue and subscribers

SiriusXM Hits Record-High 34.9 Million Subscribers in 2019

Source: SiriusXM

The numbers arent all in yet, but SiriusXMs preliminary 2019 results show the company did exceptionally well last year. In fact, their total subscriber base has reached a record-high 34.9 million, including the addition of 1.063 million net self-pay subscribers in the fourth quarter. This brings the total number of SiriusXM self-pay subscribers to 30 million, exceeding the companys initial guidance for subscribers.

SiriusXM (NASDAQ: SIRI) also expects to exceed its full year 2019 guidance for revenue, adjusted EBITDA and free cash flow. It will report its complete fourth quarter and full-year 2019 financial results on February 4, 2020. Earlier this week, the company offered financial and subscriber guidance for 2020:

You May Be Interested In:
Customer Retention 2020:
5 Trends That Will Change Your Subscription Business

Change is coming for the subscription industry. Customer retention is a top priority while competition grows and customer expectations shift. Register now to understand the trends and discuss what companies should do to ensure success in 2020. This free webinar is April 2nd at 1 PM Eastern.
REGISTER NOW

  • SiriusXM self-pay net subscriber additions over 900,000
  • Total revenue of approximately $8.1 billion
  • Adjusted EBITDA of approximately $2.5 billion
  • Free cash flow near $1.7 billion

SiriusXM CEO Jim Meyer commented on the companys success.

Last year was a milestone for SiriusXM. Not only did we achieve our tenth consecutive year of million-plus self-pay net additions, but we also completed our acquisition of Pandora Media and made significant investments in our business, all while returning more than $2 billion to our stockholders. And our new 2020 guidance points to what should be another excellent year of growth for SiriusXM,” said Meyer, in a January 7 announcement.

We recently announced a new creative collaboration with U2 to create an exclusive U2X RADIO Channel for SiriusXM and exclusive content for Pandora listeners. And we look forward this year to debuting exclusive content across SiriusXM and Pandora from Marvel and platinum selling recording artist Drake, added Meyer.

SiriusXM Hits Record-High 34.9 Million Subscribers in 2019

Source: SiriusXM

In related news, at CES 2020, SiriusXM unveiled a new aftermarket radio, SiriusXM Tour with 360L functionality, which brings subscribers both streaming and satellite content. Listeners can access more than 300 live SiriusXM channels, as well as content on their extensive on demand library containing over 10,000 hours of archived programs and exclusives. The dock-and-play radio will also include Personalized Stations Powered by Pandora. SiriusXM acquired Pandora in February 2019 for $3.5 billion. Together, SiriusXM and Pandora reach more than 100 million listeners per month.

“SiriusXM with 360L is revolutionizing the way people listen to audio in the car, and with the all-new SiriusXM Tour plug and play radio new and existing subscribers will have the freedom to experience its benefits in the car and at home on an intuitive and user-friendly portable radio,” said Joe Verbrugge, SiriusXM’s EVP and Division President, Connected Vehicle, in a separate announcement.

SiriusXM Tour will also include controls via voice command, personalized recommendations, 100+ Xtra curated music channels, sports play-by-play and software update capabilities. Content and features will depend on the SiriusXM subscription purchased along with the device. SiriusXM offers a wide range of subscription plans for the car and home that include talk, news, music, sports, exclusive content and more.

After receiving approval from the Federal Communications Commission, the device will be available in May in retail stores, including Best Buy and online at SiriusXM.com. Once launched, it will also be available for purchase with a vehicle kits and with additional accessories.

Insider Take:

Though Pandora was suffering big losses on its own, SiriusXM has been able to use it to supplement its own products and services and increase its revenue. In the third quarter of 2019, SiriusXM saw revenue growth of $2.0 billion, a 37% increase year-over-year driven, in part, by the acquisition of Pandora. SiriusXM finished the third quarter with 29.6 million self-pay subscribers, reporting monthly churn of 1.7%, down from 1.8% in the prior year period. By continuing to add new products and services, and to leverage Pandoras strengths, SiriusXM is likely to have a strong 2020.