As others raise subscriptions rates, SiriusXM lowers cost, reboots app, and targets “next generation” of users

Days after releasing its Q3 earnings, in which revenue and income numbers showed stability, SiriusXM is hoping to expand its usage by lowering the subscription cost for streaming and in-car listening. A new app is in the works, too.

The Pricing

Going forward, that subscription price point is $9.99/month

This decision presents an alluring promotional opportunity in the wake of Spotify’s recent sub-cost raise (RAIN coverage HERE.) In fact, SiriusXM is now offering an industry-wide bargain for cost-sensitive listeners. Below is our August survey of monthly subscription rates:

SiriusXM: $9.99

YouTube Music: $10.99 (+$1.00 in July)

Spotify: $10.99 (+$1.00 in July)

Amazon Music: $9.99 with Prime, $10.99 no Prime (+ $1.00 in April)

Apple Music: $10.99 (+$1.00 in October)

Deezer: $10.99

Pandora: $4.99 (Plus) / $9.99 (Premium)

Tidal: $10.99  (HiFi) / $19.99 (HiFi Plus)

SoundCloud: $4.99 (SoundCloud Go) / $9.99 (SoundCloud Go Plus)

The Gambit

SiriusXM is hoping to attract a “next generation” of subscribers, according to coverage in The Hollywood Reporter. The company aspires to shift perceptions about how SiriusXM’s offerings stack up — the idea is to raise the perceived status of streaming to a side-by-side position with the company’s traditional in-car listening identity.

Under the hood, the renewed SiriusXM listening app mixes algorithms with human curators to make channels and playlists. The app is not here yet; it will launch December 14.

One new channel users can expect to come with the app is devoted to Kelly Clarkson, who appeared live at a NYC event yesterday announcing the app/price reboot. John Mayer will have a channel too, and Ashley Flowers (founder of audiochuck) will take charge of a true crime channel.

Brad Hill