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SiriusXM’s stock rose 2.6% on Tuesday (Sept. 10), the first full day of trading since it merged with Liberty Media’s tracking stock to create a single, streamlined public stock. SiriusXM said last December that it would merge its stock with Liberty SiriusXM Holdings to simplify and eliminate confusion around its multiple share classes and create […]
SiriusXM signed a multi-year agreement with podcast star Alex Cooper that will give the company exclusive advertising and distribution rights to Cooper’s Call Her Daddy podcast as well as other titles under Unwell Audio Network, a production house she founded in 2023. Cooper became a leading Gen Z media figure when Call Her Daddy launched […]
Radio stocks struggled this week as companies’ second-quarter earnings revealed additional revenue losses.
SiriusXM shares fell 15.6% after the company’s second-quarter earnings on Thursday (Aug. 1) showed a loss of 173,000 satellite radio subscribers and 41,000 Pandora subscribers. Revenue fell 3% to $2.18 billion, although net profit improved 2% to $316 million. In the first quarter, SiriusXM lost 594,000 subscribers, although revenue improved 0.8% to $2.16 billion.
SiriusXM is trying to thread the needle as it expands its product line and gives consumers more options. The new $9.99-per-month streaming service is intended to appeal to a broader audience than potential satellite radio subscribers. At the same time, the company is introducing new pricing tiers for satellite radio, including a $9.99 music-only subscription that can expand to news, talk and sports for additional fees. The trick is not cannibalizing its core, higher-priced satellite offering. “The early results in our testing have been encouraging,” CEO Jennifer Witz said during Thursday’s earnings call. “It shows that we’re getting consumers into the right packages for them.”
Shares of radio broadcaster Cumulus Media fell 21% to $1.62 and dropped as far as $1.29 on Friday (Aug. 2) — a 52-week low — after the company’s second-quarter earnings showed that revenue fell 2.5% and net loss increased to $27.7 million from $1.1 million a year earlier. iHeartMedia, which doesn’t report earnings until Thursday (Aug. 8), appeared to be a casualty of Cumulus Media’s results as its shares fell 12.9% to $1.49.
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Collectively, radio companies have had the worst stock performance of all music companies this year. Year to date, Cumulus Media is down 69.5%, iHeartMedia has fallen 44.2% and SiriusXM is off 42.6%. Only JYP Entertainment, which has fallen 44.3% year to date, has suffered a similar drop.
The Billboard Global Music Index (BGMI), a measure of the market capitalizations of 20 publicly traded music companies, fell 1.1% to 1,739.18. Even though 13 of the 20 stocks lost ground — five of them suffering double-digit declines — gains by some of the index’s most valuable companies nearly offset the losses. HYBE improved 5.3% to 180,800 won ($139.01). Spotify gained 2.8% to $331.02. And Universal Music Group (UMG) rose 0.5% to 21.44 euros ($23.41).
Music stocks have had a case of the summer doldrums after soaring in the winter and spring. The BGMI has fallen for four consecutive weeks and stands 5.9% below its all-time high of 1,847.64 set on May 17. On Friday, the index reached its lowest point since April 19.
Music companies’ losses were compounded by sharp declines in U.S. stock markets on Friday after news that the unemployment rate rose in July stoked fears the economy could enter a recession. The tech-heavy Nasdaq fell 3.4% this week and stood in “correction” territory, at 10.1% below its all-time high set on July 11. Amazon fell 8.0% after missing revenue expectations and providing investors with a disappointing forecast. Intel fell 31.5% after announcing broad layoffs, reporting a decline in quarterly revenue and issuing weak guidance.
The S&P 500 dropped 2.1% to 5,346.56. In the United Kingdom, the FTSE 100 gained 2.3% to 8,474.71. South Korea’s KOSPI composite index dropped 2.0% to 2,676.19. China’s Shanghai Composite Index improved 0.5% to 2,905.34.
The week’s greatest gainer was K-pop company JYP Entertainment, which rose 6% to 56,400 won ($41.53). JYP was added to the BGMI this week after Hipgnosis Songs Fund was removed from the London Stock Exchange once its acquisition by Blackstone was completed. Three other K-pop companies were among the week’s few gainers: HYBE improved 5.3%, YG Entertainment rose 2.1% and and SM Entertainment increased 1.0%.
Reservoir Media dropped 14.4% to $7.37 after releasing its quarterly earnings on Wednesday (July 31). Tencent Music Entertainment, which will report earnings on Aug. 13, fell 10.5% to $12.62. Warner Music Group (WMG) fell 5.3% to $28.26. In the wake of UMG’s latest earnings results, which showed a slowdown in subscription revenue, J.P. Morgan dropped its price target on shares of WMG — which will report earnings on Aug. 7 — to $41.00 from $42.00.
SiriusXM Holdings stock fell by more than 6% on Thursday after the satellite radio and streaming content company said it lost 173,000 subscribers in the quarter ending on June 30.
The company said it lost approximately 100,000 SiriusXM self-pay subscribers and 73,000 paid promotional subscribers. While that was an improvement from the same period last year, and churn remained steady at 1.5%, it caused a 5% decline in SiriusXM subscriber revenue and $0.42 year-over-year decrease in average revenue per user (ARPU) to $15.24. That pushed SiriusXM Holdings’ second quarter revenue down 3% to $2.18 billion, below analysts’ expectations.
On a call discussing the quarter’s earnings, executives sought to emphasize Sirius’ improved profit margin and lower operating expenses, despite signing big-ticket deals for podcast powerhouses like SmartLess Media earlier this year.
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“SiriusXM’s financial position remains robust as we steadily enhance our business and establish a sustainable foundation for growth,” Sirius CEO Jennifer Witz said on the call, reiterating the company’s 2024 financial targets. “With these solid margins and declining capital expenditures, we anticipate converting more of this strong EBITDA into growing free cash flow in the coming years.”
Quarterly profit rose 2% to $316 million. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was flat year over year at $702 million and its adjusted EBITDA margin held steady at 32%.
Sirius reported operating expenses fell 5.5% on lower costs of running SiriusXM and Pandora and off-platform services across the board and lower personnel costs after the companies’ two rounds of layoffs over the last 18 months. Subscriber acquisition costs decreased by 1%. Free cash flow in the quarter rose 6% to $343 million.
“We think the key for the stock is conversion of self-pay trials,” Steven Cahill, equity analyst at Wells Fargo, wrote in a report for investors on Thursday. “Self-pay conversion in new [and] used car is arguably [SiriusXM Holdings’] biggest key performance indicator as it looks to improve capture of younger car buyers versus digital competition. We think Q2 self-pay converstion were down to around 30%-32% from 33% in the prior quarter.”
While SiriusXM saw declines in both subscriber and advertising revenue, Pandora and off-platform segments reported an 8% rise in subscriber revenue to $138 million. The segment’s advertising revenue held flat at $400 million from the same quarter a year ago.
Late last year, Sirius announced plans for a 10-to-1 reverse stock split and merger with Liberty Media’s SiriusXM Group tracking stock, a move aimed at bolstering the company’s faltering stock price. Executives said Thursday that transaction will close on Sept. 9. The Nasdaq-listed SiriusXM Holdings has seen its stock price fall by more than 65% from a 52-week high of $7.95, leading the Nasdaq to drop SiriusXM from its Nasdaq-100 Index last Thursday (June 13).
SiriusXM’s stock price was down 6.25% to $3.22 as of 12.25 p.m. New York time.
SiriusXM is facing a class action lawsuit that claims the company has been earning billions in revenue by tacking a deceptive “royalty fee” onto consumers’ bills.
In a complaint filed last week in federal court, attorneys for four aggrieved subscribers claim that SiriusXM adds a “U.S. Music Royalty Fee” – allegedly 21.4 percent of the actual advertised price – onto the normal price that users pay for satellite radio plans.
“This action challenges a deceptive pricing scheme whereby SiriusXM falsely advertises its music plans at lower prices than it actually charges,” attorneys for the users write. “SiriusXM intentionally does not disclose the Fee to its subscribers. SiriusXM even goes so far as to not mention the words ‘U.S. Music Royalty Fee’ in any of its advertising, including in the fine print.”
The lawsuit claims the royalty fee is an “invented” charge that SiriusXM has “deceptively” labeled to falsely suggest that it’s mandated by the government to pay for music rights. In reality, the lawsuit says, it’s a really just a “disguised double-charge for the music plan itself” that no other competing music services imposes on their users.
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“Reasonable consumers would expect that the advertised price for SiriusXM’s music plans would include the fundamental costs of obtaining the permissions necessary to provide the music content that SiriusXM has promised is included in those plans,” lawyers for the subscribers say.
According to the lawsuit, SiriusXM has reaped huge benefits from the “unlawful advertising scheme” since it was implemented in 2009, allegedly collecting $1.36 billion in such royalty fees in 2023 alone. In just in the states of Washington and Florida — the locations where the plaintiffs live — the lawsuit claims Sirius has collected $932 million in royalty fees since the charge was created.
And, according to the complaint, SiriusXM allegedly tries its best to ensure that consumers never find out: “SiriusXM’s sign-up process, automatic renewal process, and policy of not sending monthly or ongoing billing notices or invoices are deliberately designed to prevent subscribers from learning of the U.S. Music Royalty Fee.”
Those allegations echo claims made by New York’s attorney general, who sued SiriusXM in December over claims that the company made it “extremely difficult” for listeners to cancel their subscriptions. In a statement at the time, SiriusXM called those claims “baseless allegations” that “grossly mischaracterize” its customer service practices.
The new lawsuit was filed in the form of a proposed class action, aimed at eventually representing “millions of individuals” who have allegedly paid the royalty fee after seeing a lower price advertised.
“To be clear, plaintiffs are not seeking to regulate the existence or amount of the U.S. Music Royalty Fee,” lawyers for the subscribers wrote. “Rather, plaintiffs want SiriusXM to include the [fee] in the music plan prices it advertises to the general public.”
A representative for SiriusXM did not immediately return a request for comment on Thursday.
Read the entire lawsuit here:
SiriusXM had its best week since December 2023 this week, leading all music stocks in a week when the losers outnumbered the winners two to one. Shares of the company jumped 12.3% to $2.93 following the company’s decision to conduct a 1-for-10 reverse stock split when it merges with the Liberty Media SiriusXM Group tracking stock later this year. SiriusXM gained 16.4% in the week ended Dec. 15, 2023.
The reverse split is meant to boost SiriusXM’s beleaguered share price. After years of steady growth in its satellite radio business, the company has suffered declines in both revenue and satellite subscribers as it attempts to build a competitive streaming service. The company lost 445,000 self-pay subscribers in 2023 — a 1% decline — and experienced a 1.4% drop in the first quarter of 2024. The revamped streaming app launched in December at $9.99 per month, about half the average revenue per user generated from satellite radio subscriptions in 2023.
SiriusXM was the only music stock to post a double-digit gain this week and one of only six stocks in the 20-company Billboard Global Music Index to see growth. With 13 stocks declining and one — French music company Believe — unchanged, the index fell 0.3% to 1,814.88. On average, live music stocks fared the best with an average gain of 0.6%. Other segments posted declines: streaming stocks fell 3.7%, radio stocks dropped 2.9%, and record labels and publishers dipped 1.3%.
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Live Nation rose 4.7% to $92.96, its highest closing price since June 5. The company’s shares are down 8.3% since the Department of Justice brought an antitrust lawsuit that seeks to break up its concert promotion and ticketing operations, but it’s held steady since an initial post-lawsuit drop. Friday’s closing price was just 52 cents below the price the day after the lawsuit was announced on May 23.
Shares of Spotify rose 1.5% to $317.86 to mark their third successive weekly gain. Cost-cutting and price-hiking have helped Spotify’s stock gain 69.2% in 2024 and 101.8% in the last 52 weeks. There was more price-related news on Friday (June 21) as Spotify revealed a new “basic” plan in the United States, which costs $10.99 per month and offers users a plan that doesn’t include audiobooks. The “premium individual” plan includes both music and 15 hours of audiobook listening for $11.99 per month, while the “audiobook access” tier provides 15 hours of audiobook listening and the ad-supported music service for $9.99 per month.
iHeartMedia was the index’s worst performer after dropping 17.4% to $1.00. The radio giant’s stock is down 62.5% year to date amidst a weak radio advertising market and steady growth at competing streaming services. LiveOne fell 12.6% to $1.59, bringing its year-to-date gain to 13.6%.
Music was outperformed by broader indexes as stocks reached new highs this week. On Thursday (June 20), the S&P 500 set a new all-time high of 5,503.53 and the Nasdaq composite reached a new high of 17,936.79. For the week, the S&P 500 rose 0.6% to 5,464.62 and the Nasdaq composite was barely above breakeven at 17,689.36. In the United Kingdom, the FTSE 100 rose 1.1% to 8,237.72. South Korea’s KOSPI composite index gained 0.9% to 2,784.26. China’s Shanghai Composite Index fell 1.1% to 2,998.14.
Sirius XM Holdings announced a 1-for-10 reverse stock split for its shareholders when it merges with Liberty Media’s SiriusXM Group tracking stock later this year, sending the streaming and satellite radio company’s stock up 4.5% on Tuesday (June 18). The stock split, which was announced in a filing on Sunday (June 16), is meant to […]
Jeremy Tepper, a musician, journalist and the program director of SiriusXM’s Outlaw Country channel, has died. He was 60.
Tepper passed away on Friday (June 14) from a heart attack at his home in New York City, according to a social media post by his wife, singer-songwriter Laura Cantrell.
“Lost my good friend Jeremy Tepper last night,” Steven Van Zandt, guitarist in Bruce Springsteen’s E Street Band and founder of Underground Garage, wrote on X (formerly Twitter). “An incredibly tragic loss so young. He ran my Outlaw Country station on SiriusXM brilliantly. It is actually quite a complicated format and he made it look easy. Our deepest love and condolences to Laura and his family and friends.”
Lost my good friend Jeremy Tepper last night. An incredibly tragic loss so young. He ran my Outlaw Country station on SiriusXM brilliantly. It is actually quite a complicated format and he made it look easy. Our deepest love and condolences to Laura and his family and friends. pic.twitter.com/WA8tj3kkA1— 🕉🇺🇦🟦Stevie Van Zandt☮️💙 (@StevieVanZandt) June 15, 2024
Born in 1963, the New York native graduated with a degree in journalism from NYU and served as the frontman for the band World Famous Blue Jays.
During his career, Tepper founded independent country label Diesel Only Records and held A&R and marketing positions for CDuctive and eMusic.com. He was also a journalist, having previously served as editor of The Journal of Country Music and as a country music critic for Tower Records’ Pulse! magazine.
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In 2004, he joined Sirius as format manager of the radio giant’s Outlaw Country channel, which was created by Zandt, who served as its executive producer. The channel mixes music by country and Americana artists such as Waylon Jennings, Dale Watson, Dwight Yoakam, Johnny Cash and Lucinda Williams with rockers Bob Dylan, Bruce Springsteen and the Band.
Tepper’s two-decade run with Sirius also found him working on the Willie’s Roadhouse and Road Dog Trucking channels.
“Jeremy Tepper, a beloved member of SiriusXM, profoundly influenced us with his unwavering dedication to music and innovative spirit,” SiriusXM wrote on X. “His contributions, in shaping Outlaw Country and Willie’s Roadhouse, are beyond measure. Our thoughts are with his loved ones during this time.”
Tepper is survived by his wife, Cantrell, and their daughter, Bella.
Jeremy Tepper, a beloved member of SiriusXM, profoundly influenced us with his unwavering dedication to music and innovative spirit. His contributions, in shaping Outlaw Country and Willie’s Roadhouse, are beyond measure. Our thoughts are with his loved ones during this time. pic.twitter.com/rZxB8LZHsS— SiriusXM (@SIRIUSXM) June 15, 2024
If you listen to enough Howard Stern you know that as much as he loves his SiriusXM channels, more work is the last thing he wants. But the veteran broadcaster has long held a special place in his heart for his sister rock channel, Lithium, so on Wednesday morning (June 12) Stern will help kick off SiriusXM’s new Guest DJ campaign by doing a takeover in which he gets to spin some of his favorite songs and tell a few stories about why they are so special to him.
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“Hi everybody, this is Howard Stern and welcome to the Howard Stern Guest DJ,” Stern says in his intro to the stunt. “Over the years I feature a lot of music on the show, I interview a lot of musicians, I just love music. And I also talk about music because I used to professional radio DJ.” In his best announcer voice, Stern then jokes that during his DJ stint he learned the delicate art of “talk-ups,” where a DJ speaks over a song’s instrumental intro until just before the vocals kick in.
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Or as Stern described it, “where you talk over really good songs and ruin them.” He notes that on his three-day-a-week Howard 100 show he often plays his favorite songs and talks about why he loves them, which is why he wanted to share his personal home playlist during his Lithium guest spot.
In a perfect example of a song-ruining talk-up, Stern describes how much he thinks about late Stone Temple Pilots singer Scott Weiland while playing the band’s 1994 hit “Vasoline,” saying, “what a charismatic dude. We had him on the show a bunch of times and I used to go to Stone Temple Pilot concerts and see him perform and… fabulous band. And I would go and I’d think, ‘geez, he’s got it all. He’s f–kin’ good looking. He can sing like an angel.’” Stern also reveals some background about the lyrics he gleaned from the band’s other members, talking through almost the entire song as longtime co-host Robin Quivers adds some of her patented positive accents to his banter.
In addition to songs by Soundgarden (“Black Hole Sun”), Jimi Hendrix (“Are You Experienced?”), Aurora (“Life on Mars?”) and Public Enemy (“911 Is a Joke”), Stern will also queue up the Rolling Stones’ 1971 Sticky Fingers track “Moonlight Mile,” calling it the “epitome of a great song. This is when music was staggeringly good. How did he come up with this? How does that happen?”
Stern says the only thing he knows about the song is that singer Mick Jagger came up with it while sitting on a train and staring at the moon before going home to write the lyrics. He then goes into one of his patented digressions about being raised with a deficit of emotion that he wore like a “suit of armor” his whole life that has started cracking as he’s gotten older. In theory, that sounds to him like a great idea for a song. But, unlike Jagger’s emotional revelation on his train ride, Stern says, “and then I sat and thought about this and nothing happened! There was no song!”
The special will premiere today at 11 a.m. on Lithium and is available anytime on the SiriusXM app. The Guest DJ campaign will feature more than 70 other entertainers doing take-overs, including: James Corden, Kate Hudson, Kevin Hart, Busy Philipps, Rob Lowe, Conan O’Brien, Andy Cohen, Gayle King, NFL player Maxx Crosby, NASCAR’s Chase Elliot and more. The campaign will be heard on more than 35 SiriusXM channels across a variety of genres.
Listen to Stern on Lithium below.
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The Billie Eilish multi-media blitz in advance of the upcoming release of her third studio album, Hit Me Hard and Soft, will kick off in earnest on Friday (May 10) with the launch of Billie Eilish Radio on SiriusXM. The dedicated streaming channel will debut at noon E.T. with a mix curated by the “What […]