Pandora Media threatening the sales dominance of Sirius XM Radio

Article by Christian A., 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

Recommended

Kia is taking things a step further with the new Kia Stinger, which they first introduced at the 2017 Detroit Auto Show. With the specs given to us by the...
by - June 25, 2017
Earlier this week, Nissan revealed a teaser of the new 2018 LEAF’s interior, giving us an idea of what the electric vehicle has to offer. The company released a video...
by - June 25, 2017
The primary suggestion of a 4x4 ute from French company Peugeot was first revealed in 2016. Fifteen months later, the production version is launched. Now, Peugeot is not shying away...
by - June 24, 2017
The new Jaguar E-Pace crossover will soon hold its official launch on July 13 and is expected to arrive at the showrooms by early next year. It couldn’t have come...
by - June 24, 2017
As prices of the original Shelby Cobra have skyrocketed into astronomical proportions, there are firms like Superformance that serve replicas to consumers who demand the same levels of performance at...
by - June 24, 2017
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