“At SiriusXM, we are focusing on the strengths that set us apart.” –Sirius XM, Updated strategic plan
SiriusXM has released an updated strategic plan — not a quarterly report, though we expect to hear the themes described here at that time.
Marketplace Headwinds
That’s a phrase we’ve heard a lot, really since the start of Covid and continuing apace, at least for Sirius. CEO Jennifer Witz says her company is “taking steps to drive profitability and cash flow as we face marketplace headwinds impacting the company’s growth trajectory.”
The thrust appears to be a refocus on the company’s traditional core subscription business, and positioning the streaming effort as a kind of sidecar to the main engine. Streaming is referred toas “a companion to the Company’s Core Automotive Offering” — a clarifying statement which reorders the company’s go-forward priorities.
No regrets, however; Sirius credits streaming with “expanding the the service’s reach and engagement in and out of the vehicle.” Sirius promises to continue highlighting the streaming app to core subscribers.
But those core subscribers stand for the essential in-car business. “Utilizing Streaming as a Companion to the Company’s Core Automotive Offering” is the new plan. “As a part of this effort, the Company will shift marketing and other resources away from high-cost, high-churn audiences in streaming to focus resources on core revenue-generating segments,” Sirius promises investors.
Sirius will also utilize streaming as an in-car service to some extent (“where beneficial,” the report states), citing an existing deal with Tesla.
The annual report is public; see it HERE.
