Hollywood Reporter; SiriusXM Shake-Up: $200M in Cost Cuts, Pivot Away From Streaming

Story from Hollywood Reporter:

SiriusXM has appointed a new chief operating officer and laid out a new strategic vision that includes a greater focus on cost efficiencies and on its car subscription business.

The company will target an initial incremental $200 million of annualized savings as it exits 2025, according to a press release Tuesday, after delivering about $350 million of run rate savings in 2023 and 2024. This effort comes as the satellite radio giant faces “marketplace headwinds.”

“At SiriusXM, we are focusing on the strengths that set us apart – including our strong core subscriber base, our unique position in vehicle, and our unrivaled, curated content — and taking steps to drive profitability and cash flow as we face marketplace headwinds impacting the company’s growth trajectory,” said Jennifer Witz, CEO of SiriusXM. “We have a clear path forward and are confident we can deliver for our stockholders.”

Wayne D. Thorsen, former Executive Vice President and Chief Business Officer at ADT Inc., has been appointed in the new role of executive vice president and chief operating officer, starting Dec. 16 to oversee some of these efforts.

The company will also move its marketing and other resources away from “high-cost, high-churn audiences in streaming” to its “core revenue-generating segments,” namely its in-car subscribers.

“As 90% of SiriusXM’s subscribers have the service embedded in-car today, the Company is focusing its resources on increasing retention and capturing additional growth opportunities within this valuable segment that underpins its scaled subscriber base,” the press release states.

This comes after the company launched a streaming app in December 2023, for listening in and outside of the car, in what was seen as a service to rival Spotify. While SiriusXM appears to be moving away from some aspects of that plan, the company said it will “continue to highlight the value-added benefits of the app to its core subscribers,” and will utilize it “ or automotive distribution where beneficial,” such as in the 2024 Tesla Holiday update

Joseph Inzerillo has stepped down from his role as chief product and technology officer, effective immediately, to pursue other opportunities.

Despite the targeted savings, the company said it will still be committed to investing in content, particularly in its human curated and hosted music channels, unmatched depth and breadth of live sports, extensive bench of leading audio talent, and growing podcast network.

SiriusXM delivered updated 2025 guidance of revenue of $8.5 billion and adjusted EBITDA of $2.6 billion, below its 2024 revenue guidance of $8.675 billion and adjusted EBITDA of approximately $2.7 billion. Free cash flow is expected to reach $1.15 billion in 2025, above the $1 billion in 2024.

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