Pandora Media threatening the sales dominance of Sirius XM Radio

Article by Christian Andrei, on January 16, 2013

Due to the accessibility of Internet connections, Pandora Media Inc. is slowly gaining ground and is threatening the sales dominance of Sirius XM Radio Inc. in the U.S. Proving just how valuable the auto industry is to the two companies, their top officials appeared at Las Vegas this week to get in touch with automakers at the annual Consumer Electronics Show.

In about 70% of new vehicles, the satellite radios of Sirius XM are used. It gets most of its revenue from subscriptions and gets only a fraction from advertising dollars. This is a sharp contrast to streaming service Pandora, which gets majority of its revenue from advertising. It also runs a still-small subscription business.

Currently, Sirius XM is much bigger with nearly 24 million subscribers and over $3 billion in annual revenue. It had an average revenue of $12.14 per subscriber in the third quarter. On the other hand, Pandora has 60 million users. Of this number, around 1 million are paid subscribers. It is presently on course to generate $424 million in revenue this year.

However, Sirius faces the threat of music consumers moving to mobile devices. Since Sirius XM is present in new vehicles, it has an advantage over Pandora. However, Pandora has launched an impressive campaign with a move that enables listeners to easily access its service with wireless service. When interviewed, Pandora CEO Joe Kennedy said that Internet-enabled radio in the car has started already, and will “grow as a snowball” that will be small at first but will grow exponentially. No comment has been made by Sirius XM.

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
Having a blacked-out Bentley Mulsanne Speed is already menacing by itself but by naming it as the Bamford X, it became all the more imposing. This model was made by...
by - December 2, 2016
We have good news for those who are waiting for the latest version of the Mazda CX-5 compact crossover. It was just unveiled in November at the 2016 Los Angeles...
by - December 2, 2016
Those familiar with racing know that Marco Wittmann’s win during the 2016 Deutsche Tourenwagen Masters held last May was noteworthy as it was his second title in four seasons. In...
by - December 2, 2016
Volvo has revealed that while its products are used by a number of police organizations around the world, it will be the Swedish police that will get the first chance...
by - December 2, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries