SiriusXM launched a low-cost subscription service this week as the audio giant seeks solutions to reverse a persistently declining subscriber-base and increase its earnings from advertisers.
The new, ad-supported service, called SiriusXM Play, will cost less than $7 a month –less than SiriusXM’s $25 all access plan or its $9.99 app subsciption–and will become available by the end of this year. Play listeners will have access to the satellite radio company’s 130 stations in the car, including popular music, news and sports channels, as well as the app’s offering.
While price and availability are still being rolled out, investors were lukewarm to the idea. SiriusXM’s stock falling by more than 3% on Wednesday to $23.07, one day after the company announced the news.
SiriusXM lost 303,000 subscribers in the first quarter this year, bringing its total number of subscribers to roughly 33 million. While still a healthy subscriber number, the deline drove a 5% reduction in the business division’s subscriber revenue. Last year, the company said it expected 2025 revenue to come in below 2024’s figures, forecasting revenue this year of $8.5 billion compared to 2024’s revenue of $8.675 billion.
As the dominant premium audio provider for listeners in their vehicles, Sirius’s fortunes are closely connected to the automobile industry. U.S. auto sales rose between March and July, as people rushed to buy cars befure prices rose due to new tariffs on U.S. imports. While that could be a good thing for new car starts, a category of SiriusXM subscriptions the company is expected to share details about when it reports second quarter earnings on July 31, car sales are cooling as tariffs are expected to drive vehicle prices higher.
SiriusXM executives have been teasing the launch of a lower-tier product for in-car subscribers and expanded and more tailored marketing opportunities for advertisers for several quarters. On Tuesday, the company said Play presents an opportunity to boost not just subscribers but also ad dollars.
“Play is an exciting new opportunity for marketers,” said Scott Walker, chief advertising revenue officer. “The car is the final frontier for digital ad-supported media. We are opening up new inventory.”