SIRI - Earnings call transcript Q3 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning and welcome to the SiriusXM’s Third Quarter 2020 Results Conference Call. Today’s conference is being recorded. A question-and-answer session will be conducted following the presentation. [Operator Instructions] At this time, I would like to turn the call over to Hooper Stevens, Senior Vice President, Investor Relations and Finance. Mr. ahead. go please Stevens,

Hooper Stevens

At of available Content President, good conference Chief call. Welcome Executive of our call. be Witz, glad Officer and also our remarks, Operations quarter be be incoming the Chief SiriusXM’s our XXXX will our Jennifer by earnings Today, joined Officer management Marketing Q&A morning, you and the and Officer. to and Chief everyone. third Executive Sales, Thank Jim take our your President prepared will for portion to questions. the conclusion Scott Greenstein, will Meyer,

and to management’s First, risks Private forward-looking I and the the Such would could statements everyone or statements like uncertainties statements incorrect upon is beliefs might necessarily may term remind methods to upon Securities imprecise. cause call or Litigation results during are current be as differ expectations all subject depend forward-looking and made that These are the and materially. Reform in data assumptions, certain to Act be actual that defined forward-looking statements based that XXXX. of

more listeners For unduly not risks about to obligation forward-looking view uncertainties, intent update on any and or to statements disclaim rely We filings. them. information SiriusXM’s SEC please those advise and

call that purchase All the now and like of compensation and today’s advise about results. operating that pro adjustments. of exclude stock-based to price pro we discussions begin, As forma I accounting I’ll the would Pandora will discussions assume results Meyer. January and results adjusted to the closed forma include our certain X, hand listeners effects both results adjusted Jim transaction actual XXXX,

Jim Meyer

made Jennifer on SiriusXM’s certainly and here. for us the XXnd important CEO They’ve has you It our morning. conversations talent coming of to evolve team strategy deep Good sometimes Hooper. very as to this fun my CEO. My for the that is with joining I’m SiriusXM’s in And know call It’s right been Street. as I’ve honor today. leader lead execute outstanding and to Jennifer be acknowledge true challenging next to call a a over growth. Thank also the the will earnings last has confident SiriusXM. Thanks, of call Board help bittersweet her our you the behind the bench of Witz, Company’s stage company. the that stronger chosen It’s years. enjoyed

I’m I’m to Although looking more not out and time forward pasture yet. to my year, family with spending wife just next quite

pandemic. quarter XXX,XXX quarter, now call, guidance the The last momentum new, self-pay exceeded third support XXX,XXX, subscriber providing proud XXXX increased of I do results of And the but the additions Jennifer We am have in in work will wherever guidance. to whenever even our financial goals. during formed practice expectations to continuing earlier Board deeply Vice Company’s out on what as increasing of plenty the remain And the month. subscriber quarter to able did we remain these self-pay Company on figure and we deliver our guidance and will only positive that happily early we increased already and and like second during a I of and SiriusXM’s resume on had with possible. this and year our third highly ongoing resume long-term approximately results I we’ve of Not better, success. far our been invested our Chairman, this

in the advertising the into has decline another sequential it’s back the excellent to increased strengthening and only quarter. flow business in decline during September, in a Our churn, going excellent a is increase overall revenue revenue you’ve producing see sales, you also the to rising of bounced cash revenue third core the a and X% quarter low Put way, second year-end. come auto with month subscription expect. along of fact, advertising momentum XX% humming XX% business in the revenue in year-over-year. quarter. in ARPU, actually ad The And Today,

guidance and new EBITDA and approximately $X.XX higher adjusted flow now respectively. XXXX cash anticipates billion, billion, $X.XXX $X.X free of revenue, Our billion,

We are an offering. of on confident very at year. for The guidance. And I track am is of the quality our core in and relevance extraordinary our this programming

the content, Our digital unyielding attract and continues scale, our focus on at relationship features new also listeners great to innovation in fantastic product entertainment solidifying industry. while new

involvement me this words very fantastic ever agreement. been is a long-term he’s show about few for where We perspective, never program top producing of Hart it’s Kevin but well, Recently, never From his while very strong. comedians. we also tells content, renewal SiriusXM, done. never and very confident say long, done me will how soon is am to for resigned creating we show have an and by audio are a in far investing it’s his interview better. until served. productive his it’s his conversations my heavily had He relationship agreement And First, a I just Howard has announce let he happier. shortly. with Howard our been new new deal with as will us channel, increasing regarding podcast, exclusive

on SiriusXM to channel Maverick’s McAfee We game. the successfully a YouTube. and programming new that channel. Dog and the have added live of launching focused show our show MLB most live us within of Progress, enabled our bubble. Forward concerts society the Our broadcasts every now. important NBA Mad sports. country, and events, course, relationship with and to we resumed race, Radio Pandora and from NFL of Sports of on We’ve college NBA content resumed the members issues with including Pandora in added LeBron And reflects virtual for also launched Pat popular UNINTERRUPTED sports and launch major the We’ve them playoffs, football, full-time

and Xrd, And live go of coverage. own with election a and Patriot POTUS, from number many November others channels on and our right, will every on the XX/X covering left like We’re wide channels, of Urban View, perspective, center.

the to with a relationship average X% work user the who XX% game. continues during where curate Modes on CNN more a with expanded adoption of of the increasing since We is We a we Modes to NBA as look Pandora Tip-Off some in find media geared streaming time quarter. different compiles to that advertise in SiriusXM of channel, way playoffs continue feature of use HLN. with work spend reach an non-users. audio. the the and CNN documentary brands, our Originals, innovative provides last music Mode, popularity, new your than of grow to Modes to Pandora’s major listeners best anticipation music the launch their CNN to who extend which We full-time with

So, expect timely more Halloween Mode. Party a focus around Modes, including

more I’m podcasts, of turn to in matter, in our all that there’s tremendous development. operations. With really experience on now more part can news. that while, live more our our digital is content especially content, creation SiriusXM enjoy tell, Jennifer? more [ph] to SiriusXM And As call and personnel SiriusXM, an always and we on-demand experience unique matters, will will service. subscribers a and folks, Executive live product personalization that you can next sports that, believe curation choices, We over share. some is color is Officer energy that right community, we truly Chief consumers Witz, and give pleased everywhere for the Jennifer happening an

Jennifer Witz

a join to executives is in years I Jim. nearly on me trusted a create an have entrepreneurial big with you, team big of the Scott be events, growth subscriber Even own It XXXX. our special of to that of in to our subscribers much outstanding members today, we an Greenstein to incredibly heart leaving subscribers focus to studios a where pleasure always than Swift. to come. curated to at environment SiriusXM at have the true team decisions talents consumer content an take Thank continue the spent for Company. someone at Jim and I one will a and leader And I’ve their unique more invest content they would month Taylor us the excellence like attending and wanted his and to in senior the is love. growth job our this at offering. the root intend fostered SiriusXM integrity our home, career of privilege from across the is resident, with listeners. industry my content same by to organization of one excellent through best Company deep create SiriusXM nothing as exclusive always of talented who risks, of I the set help gained relentlessly the a and music, Sirius such value has most commitment. with the deliver artists day have we our in entirely expectations everyone new thrills experience. follow blend And a talent our building proposition. company I’m back an and of special connect support unmatched I continued our paramount consistent when loved XXX% expected subscriber it and Brooklyn and mission is of to execution. and Viacom our its an and are vision done growth in we opportunities knew And to are junior possible SiriusXM from see to nurture, culture the employees first joined on high,

We Financial new our and Chief pleased insights to Sullivan welcoming new be value next also Officer. very I’m week and perspectives, as Sean

orders third and just this, pre-COVID we rates originally SiriusXM and sales modeled in recovery Stay-at-home in year. conversion near conversion net quarter our quick quarter, to sharply During performance steady associated like earlier produced three-month of strong we channels XXX,XXX, self-pay than this churn levels, adds. reduced second trials. fewer the Despite auto win-back X.X%, opportunities the the faced dramatically

we a strength enabled the new goals from XX% of during XX% down and the consumer twice SiriusXM us XXXX, our what Combined rates Our back time starts the track year declining the with in combined that X%. cars, up in new And relative close ago. of saw ARPU last outperformed for quarter with quarter versus quarter, relationships new completed finish car of in million fourth churn U.S. up Rebounding year. start implies approximately third one our in third in have additions to on now component numbers, President for since new auto to up to penetration my too, X% quarter consecutive year. car of the best grew year’s closer actually sales, this the full quarter This quarter And the XX.X fleet XX% OEM year-over-year. our resumed sales, of XXX originally penetration and GM from third bouncing churn. quarter the slightly quarter, third we’ve year. key year last rising size potentially more projected with an subscriber million, this January third reached us fleet approximately this did BMW. total net combined sets extraordinary the our are in this decade, Company. environment. the a agreements guidance, versus XX% rate, and will grows was starts Since ARPU of given been self-pay summer were Strengthening well and we next used and rising up raised guidance trial for the fact, of gains trial has in solid to time these The means SAR X% than which my We we as with of fourth performance extending subscription the of year with quarter. put which expanded the

push the in XX% expect our We factory and even months, penetration few touch years continue agreements to and the to to that in a come. to other these beyond next OEM

become order and also these the personalized of We the vastly plan future pleased consumer deliver with a upgradable marketing. with incorporation possible improve best combination satellite of better that very of of more record XXXL platform, more a broadcast major OEM. efficiency our vehicles. interface, of in has effectiveness every our and next to streaming is provide focus enables and have The generation I’m experience content the in made XXXL, to agreements, that us

rate. car And our because still used cars of in of cars, half to our few expect sales and We represent XXX penetration half to the of in tail penetration rises it source lengthened our car new additions of almost The enabled long next quickly year, XXXL than the This used opportunity vehicle a will because grow about business. more basis to rising new success of growth up the growing sold of used in to all in cars in is continues years. tail cars used points America. new

drive our so recent SiriusXM steady an in a among traction goals not our greater of of app down report By streaming streaming may were central every can radio was our of been to making base a are channel. thoughtfully streaming-only year, and much on just across vast additional year. the package progress the all existing season, is more last how SiriusXM need subscribers and streaming-only our earlier most need also younger our to country acquire the subscribers silver platforms. pandemic. makes improve we promotion have package various ensure We’ve premier engagement subscription. we a our offering, subscribers of our NFL who This and for years game streaming, while the to constantly this locked get that that has as a was improving agreement fronts. streaming-only of attractive. these Gen One for the NFL include resources I satisfy in-car utilized one part to are X exclusive That that for streaming direct-to-consumer our much NFL and well The our generation. content out-of-car earlier this three able we subscription This stream free working SiriusXM expanded as example rights with ran streaming with of lining this recently year customers resonated with

to greater Simplecast aside, assembling easier hope The advertising we their audio million quick easy wider announced exposure which our our now Jim representing multiplatform platforms the Monday, and commercial the targeting advertising this to digital and do considerations and look through and Stitcher the about sales audio fastest and across sales short-term we only platforms. our XXX but gain of relationships of introduce ad highlighting to entertainment, capabilities monetization reach podcast universe And and revenue. our acquisition, acquisitions a in to SiriusXM access. and Pandora. we only talks our more podcasting, advertisers. our leading complement attractive reach benefits suite combined it listeners AdsWizz we with sports, we audience audio powerful to We just to fantastic making our a more every content listeners of category segment closing of are than As to the Stitcher not properties Stitcher and across Pandora products by of tech and audio of creators efficient for growing content intend become podcasts. and capabilities this on platforms. rebound spoke of And and our opportunities use tremendous music, technology opportunities We with audience combined enable for and creators

getting North leader American position digital audio and stronger. We in advertising, only is are this the

turn over for performance. our would build in and the challenges, excellent health long-term cases, has our our to all I some during this this incredible unexpected has to goals continue day dealing our Jim a We like for years. he continue health day for of final these as of moment the this all and dedicated year in I’ll I thank all eight pursuing to CEO of guidance about one’s and been with want And it of no for and or relative, like working for Company Yet that, childcare other. own to to thank leadership on done home, our year employees. everything worrying at his unprecedented Jim employees. With delivering we increased environment From this remarks. some an out, even take also that, past back

Jim Meyer

returns facility in year SoundCloud. million we range pace investment later of March about and on SiriusXM a Sean We in of expected third the Monday, million, $XXX a launch X returns the of make small to We in is year-to-date half taxes estimate federal the our million suspending few X credit Since After billion, still of billion sheet. our XXXX. Jennifer. dividends revolving $XXX just remarks SiriusXM year, the this no first the back with I’ll this second cash repurchases the Through $X.X relatively to times. balance repurchases the this EBITDA net $X.X trailing of in amount buying in capital totaled pay starting increased undrawn share committed expect we shares was quarter the and of brief launch our acquisitions was still September, year, CapEx XX-month the and much, and very completely in Stitcher, XXXX. million. of X.X our end At and third nearly And and $XXX and in on Thanks quarter, quarter, of X capital fully $XXX available. debt fund the share Simplecast capital our our to additional including our of adjusted to ratio

allocation With continue leverage months in and the and of let’s repurchases [Technical up we subscriber to that feel Difficulty] Operator, capital you. given Our this unchanged, targets and and about we’ve remain expect our I it open share financial year. Q&A. excellent increased the Jennifer for final

Operator

Instructions] Thank JP Sebastiano from question can Petti you. We Morgan. of take go ahead. Please first our [Operator

Sebastiano Petti

the next XXXL, there’s Thanks thinking luck Jennifer some and just the quarter you move for career, that you next extensions to you XX% rate but But, the so. stage it Jim in penetration GM, and through said, your quarter, the above out on that be BMW, term. a to of as as quite good taking not question. talked pasture you new longer whether about also the on of role, to Congratulations

too self-pay revised the net at beginning guide, not far the add off year. of XX% You started where you the touched on your of XXXX

upon in -- economy I as doesn’t mean, goes But pickup related economic some perhaps penetration activity. depending putting perhaps go churn as it With together, seems the higher, the penetration vehicle rate the all rising, should here. double think about and levels XXXX net up we XXXX add XXXX adds? did? shake where relative How where out to dip self-pay that are the What to XXXX different pieces into continues a probably can

Jim Meyer

you for will year. shaping our self-pay a But, your a stock our have expected thank XXXX guidance words. investors, would very to much than And are our OEM I I’ll are early expect been completed, yet, and we in we I certainly to story. better foundation six mid-term up OEM things on not Obviously, months give you going comment First, kind But, think, for you next give the we’re but it that Jennifer in who let new agreements really agreements. particularly tell strong for our just are have ago. long-term, the I will these growth moment you, would in

we same think the the is You’re it on residual -- for -- very will come over to penetration for used like about with would Jennifer, I and outstanding do behind have trials. cycle OEM up sales right, we don’t that. then We them you can’t of it take years, kinds And don’t forward. But, next the auto cars rates, lay of penetration, you down. the out when funnel really those to anything and kinds going well with that just, agreements? really it bodes comment an growth think five

Jennifer Witz

Yes.

that pickup But, with in with of of rate. XX% model past few a next vehicles continues announced So, the BMW new increasing have number that more several to will even hitting really And said, subject the into strong number we agreements months seeing always that And extensions, and we year those in of equipped bolster confident the year. course, we like penetration are GM to XX% to XXXL. a next of we recently, have over line and be obviously, It’s releases. sight an months.

we’ve XXXL track X.X of in new few sales, in And that XXXL enabled today, expect hit percentage course, XX% year. we that next this with of years. the expect terms year. them on next to into that mentioned of We the million the And of said enabled are to end we going by triple the to vehicles our I of car see capable

incredible these with personalized with So, we’re new have that nature expand. of more as OEMs that OEM the capabilities, flexibility And features. putting the cars into gives more us bandwidth, with relationship will interactive just we in the terms been well content stronger. never continue the to And as technologies we of has the distribute can the unlimited

positioned. be And think really will yes, that us to a And into so, I tailwind going we’re next continue well for year.

Sebastiano Petti

pieces some the Recent compiled, it has about as with over certainly, do as audio XX% makes Pandora business time the that overall biggest What get and be the Simplecast Thank next over level, which kind SIRI fruit think, the you talked that digital business. well what so much. AdsWizz, on I as several acquisitions. next spent what to right, $X larger Jennifer, low-hanging several to you’ve whether billion you of or of see and maybe years go Stitcher even up the or are years? you getting about assets, you conferences the

Jim Meyer

would good -- three are So, we’re the I’ll off there or to And I I’ll comment give obviously you what and pieces, them. end on of four key that.

really that battle that I’ll increased listening Pandora things hard And with And that done helps within we’re also -- Pandora continue investments offsetting the still listening -- in to innovative earnings I platform really declining on by really our base. market. still the base the hard to far and -- we But, Pandora decline. it With base working we’ve to over engagement at is, problem. by is the bring seen certain the our we the in that looking listener is increased U.S. SiriusXM have And largest negative, with funnel, in types the help are content of in think listeners at really ways hours. which start the listener we’re which by listener said, Okay?

is unit. that later, average the going different those And that when specifics into per monetization a seeing the I you is of tailwind can that ads, you’re all you but ad, is our increased of get for monetization of forward. good won’t into tailwind I unit per point good us Hooper with out, Another you’d a think also if types get like,

the all we’re in SoundCloud worked in bolstering, sales out arrangements. in with for our see And more think, fact, relationship us, shortly, of those terms working advertising great being by their out for I Jennifer has of within X in that, place that announced giving our all organization, she going believe sales of organization really new more combined her X advertising under at And to than on the Our types us be revenue obviously of up is X. their will year. advertising beginning where agent I you’ll and has the do plus U.S., the end one

sure of that is are now, way, what my an those certainly mind ad at don’t of there. there there’s right no making unrealistic in time area really area but on. play to is right believe this fertile the we there, spending growing all. $X I play we’re is It’s is By doubt all So, both is And growth. believe us area is billion I a quite technology think a understand this an quite focused I bit for of the an the that area

Jennifer Witz

just I if would that. could, add Yes. on Jim, I

I into think, force with Sebastiano, we platform, under XX-plus We’ve massive leading Trimble. insertion already order-to-buy that, it’s and tools, for have, podcasters, hosting Simplecast added for really which platform. we’ve the which pieces, ad our right? had AdsWizz And is combined primarily sales a John analytics years three

offer to digital audio platform sales as a brand. to We and platform leading ourselves position ad to able have for any continue be scaled media a

and well technology capabilities the that of combination in really sales us space. it’s positions So, that

Operator

ahead. Ehrlich Bank Securities. of go America from Reif Please of is Next question Jessica

Jessica Reif Ehrlich

got Thank couple of a you. questions. I’ve

for given of how churn, low balance churn a First, growth, raising subscriber raising continued how do been years, prices. strong surprisingly low you versus extremely has number ARPU,

Jim Meyer

and you first? to or do take one, make jump don’t want comment in. Why you start to that you want do Jennifer, I’ll

Jennifer Witz

a low in we of that subscriber have at you revenue to long Sure. revenue is how to and growth. of consumer to Difficulty]. look end as And relook have, end history, think, we between high overall growth have the at And terms balancing I structure. capture. overall we we of and a it demand, Jess, continue opportunity packaging at our [Technical know, growth the And both lot expanding

at And so, churn contribution. terms of it. real we that see just several look I months. every continue really and modify spot think lower, to been point, last bright a component never been has the to your in of We churn over But, it’s its and positive

even we voluntary center side, the staffing. across And job, when a it’s obviously said that alluded and as non-pay especially struggled or we’ve low and as even how earlier card especially the to continue is we this and credit really consumer the we do is, we on is On on with to And year call is believe, operations and execute surprising, board, team doing savings tied lower great the rates. higher part card non-paid level. churn debit entry our have spending before, this really to side,

on churn vehicle-related, to the on the vehicle down So, side, grow rebound, we’ll phone. still related increase -- see what on feedback and see it’s started we’ve there, that to happens year-over-year. as that turns around as but trials sales an sorry, and I’m we some getting see And

exceptional. a components And all change of churn we three so, And been just materially that. in don’t have see

this do to and the expect that. pricing structure to continue we with X.X%, in have be around have right we We obviously that place balance to that expect said we and

Jim Meyer

at to debate It’s packaging instance, seeing a can great and that’s based on that And continue that work ARPU going self-pay often, the you because and has will years, out on quite imagine project we’re that that referenced, based but tell -- over in as question my it’s three a is to one grow often. for of quite as grow that been Jennifer conclusion lot right and not on churn subscribers five you, mind to the we continue there’s my going debate, we the next now on same can rates I discuss no time. in doubt you

Jessica Reif Ehrlich

is and up brought Stern. Howard One two is have one content you content, On other I topics. advertising.

just the kind library, hopefully, So, maybe you you’re some and the the relationship? of Can XX next in think XX, terms? for update terms the expect? fair will The the us evolve, can us years. or you give what give that you on length contract? get we I And an Drake extended it’s out game. color should included last do another what of Does on of contracts for, how one that contract, move that for looking Like,

Jim Meyer

Yes.

done. we to question number set the But we is is would only you economics then answer Scott, happy in I’ll on more are some fair, those it that we wait rather of contemplate. any I’d is where But, Obviously, of please? stay we’ll to now. certainly deal a it what deal say Howard hopefully, On I’m take comment until for and with can part get you But, right Scott ask is of that have soon. tell So, discussions And I’ll specifics completed. a Drake. ask one. and Drake, arrangement the there. Howard, you pretty I I’m to -- discussions, to here going tuned comment And Howard’s a team today, the that got have we’ve be long-term on with. happy can

Scott Greenstein

Sure.

couple of So, a things.

of release going to Drake of some his So, album. with with the do to Sirius of most Pandora we’re time the artists, the and channel wants the release like things and

worked -- than feel and else as of anything the you want pick and on to everything couple the everybody audience respond which he’s and the music. like been you to deep with climate else, at any look your other us that he a knows, And lot. quiet a singles, landscape we I and shot other think, artist, best will your

most regular we’ll I already to don’t momentarily, but him, assets built. his team. of contact, and we want for both speak I And -- certainly and management with him we’re in our have think

announces on only We’re the think as we’re it, that much think people meeting, date album, his be really things category on it. with I surprise really I which which confident ideas. certainly that think, a And to but other content, there’ll will in will playlist anticipate some Pandora’s longer, have unique to release I to some and ideas channel, with we’re ready going some early soon will past go some interesting quarter. as imprint not technology the Pandora of him. working too some in things he his I our marketing certainly of be have we with have be not that been the We’ll go discussions on And anything don’t first

I channels get So, on, the this we’re is to going that launches to be be focus the that. are over going one excited think unique always artist that more when pretty we of we And something there.

Jessica Reif Ehrlich

was Right. And positive, And the a part of category. do different continuing is as was maybe digital Looks fourth into the competition where you it that and in your to advertising. my Who like it’s I your Jennifer. view driver guess But, in audio? then, last then, question finally advertising quarter? biggest what September on

Jim Meyer

this take one. me let So,

First competitors, and think, I foremost, audio we have I not just it’s and multiple dollars. think

towers. they on had Procter the calls our I’ve and including audio of media the and which a pleasure manage For their channels, sales Gamble, as & across instance, allocate couple of learned going sophisticated that with with they I’ve they each the several their let other force, sales digital is way compete quite

we’re within in quite also a quite say, iHeart, target obviously well we see bit I’m quite to see though, our we both And clearly doing from a bit those we space, from areas. Spotify. of in happy So, particular,

I the the I weeks what the take my quarter, in off included of when of think, in after. to does keep market, us, momentum. not drop nine flat up what’s up. you continue the ad rapidly we October versus it’s be It’s quarter. will fourth couple or to left of you why if Obviously, for right have which November we’re that last that got still still. reason quarter. year in you the picked the those we’ve able And now days first disappointed exactly least is see and right I’ll it, on early should I about comment it kind political remarks robust slightly quite at believe look and the at now. in And But, out going in advertising fourth September things

Operator

We Swinburne can ahead. Please of our take Morgan now from next question Ben go Stanley.

Ben Swinburne

to about years so if And you us I business. front. next to locked you’re could attractive by was able gross a think costs. investment seen retirement, sure, on you us. in one X can. on cycles, -- both I wondering you at have and margins X we’ll the Company the the Day, miss of congrats have do been these got please Jim, a and whenever Since think you. things the help long music you XX% business the that lot of just is touch and Because for But, miss kind time like Liberty more you’ll about that I’m of Thank is stop of satellite in maintain you Investor than from stay

beyond up. that eight think, Apple, doing is of think for into But call. and been we’ve I market’s around on particularly like I Drake cost Spotify, pouring going others Howard money talking space the about concerned, music this been true business the the it’s Obviously, years.

as you talk just capital and artist you they community I’m do perspective community, on the love hear of we’ve see business Jennifer just go period with to the cost heavier or of that and of changing than past? guys of you going sit, look whether through that with beyond of is in and And well think seen and the in as in dealing terms things from their forward investment lens that and a content I’d the not the the So, in Scott music? to from where amount wondering sort

Jim Meyer

So, any I’ll start. been it’s intense the don’t for today think XX is competition I years. more than last the

extraordinary content. every Jennifer exactly track that. both back manage record I’ll to our up a parameters. don’t we’ve us And on the Scott within in mid-XXXXs, always then But, for day, on so, what in what call been and too, ratcheted in more believe And we’re on much content I content. see. got that whole it’s our extraordinary And record content. offer bet knows I proven track overpay cost that with we’ve able sense as the I’ll extraordinary this committed I for I, Scott -- me, demand in was I see delivering high see been let I many There’s but moment, would comment the platforms And a as and don’t Scott continue seen we’ll and we’ve read acceptable a of can of to of how what to reports really do it lot -- to means I past. because

there’s and so biggest for So, better always we’re making think you how going and that to it extraordinary content content. that. lot find we I much bet so really still decide filter through the is to center get front content think you you’re on that paid lesson. sure frankly, they problem really users better that time do get to the bought on? problem do out And I that there same, do the that And whether which much How a and then, spending think, How content? But, particular of which there’s iteration, like you is content I experience it, the for not. of we that out at or is

as I sure So, I’m huge is not I frankly perhaps streaming streaming is a And streaming that as a betting But, since indicate. shaking the technology. as overdone. freewheel mean I call, Hooper like thing can I my is worried here. would we’re one think don’t on little that on comment more. last the don’t -- as by is I’m heck, well thing. a to comments other this whole And a little little

what big look much being the and has over streaming Okay? download to business X what’s back of last I the if the well. offering as or X a Spotify certainly business, is, me, to equation offset us at the to we’re net how share me go for going look room you But, more the the frankly, happened better look those by the probably, some at years and be by be still yet, largest a at particularly those terrestrial audio Because the to that’s able from radio is that landscape, two share dropped for audio when and I’m means least out, staring at take think. think there’s the the lot I share, others see, free believe as research some has last of you think, came you still that to just not But to night from And of me as if at you radio. grown. Edison whole is riskier and continues market. take to product. for way And guys I And

let me comment to Scott, turn content. So, you on a for it

Scott Greenstein

Sure.

we and of make when our do, first, it’s So think what and things that. two individual content the curation like work, brands that talent then of pillars you and

areas, that that’s we really and Pandora to things be in important. serve And think only vastness is overwhelmingly content them. curate in respond you tools that always music unique individual and at plus you other obviously important and and is not at Stitcher we’re that a going what both items. podcast curate, sideline the basket to the to alluded and the are to feed find like curation So, things, people most matter from when those to at to, the some brands of a thing look war of to point, as of Jim a on have the factor to curation in your in now, ability trying and the which going fee, now with I talent But but point, meaning point talk music, to music

comes the at to themselves, brand we or to Drake price where to on discounted, talent, But pay. that to has they of want factors know be early also, to also bidding on that XM being bidding good what against there’s about something matter. do you against brands, As the been others. think far. We level that alluded going, whether there as situations the they wars other bet other don’t on. of be now. too we And smart but a are And now I company that track you always and important artists of our and along what a allows changed more go pretty us There’s those, really as or and Money that a There us. Sirius right generally aura into be with to always puts those you has things. be but cause with freedom environment. factors. at new concerned a nothing production which feel an Ben, that other content days. medium people us as on a that’s way, where we the competition certain the something they and is And and cost our we look that bet But the what we will terrestrial bet that lot record, they the in bet look always generally, and know a factor, things lose what us on. skills, bet big many production Howard of at well work for so in find expression things Jim combination, look on as to We And don’t, of want least all would frankly, that don’t of is that talent at consistently lot I get is part that or done it’s can else.

Ben Swinburne

very That’s follow-up? I Could helpful. ask just one

on look add Simplecast about community to wars, that offering, or to maybe something side, side. to this podcasting am I’m thinking made does content much? do you You now content creator the have some at on on plus I too podcasting it guys Stitcher, your when interesting bets the more offer the wondering have conversation you

Scott Greenstein

I I’m actually level No. glad want didn’t that up. go to one deeper, but brought you

was topical, do a with that to also in a the something got the to radio say, schedules and what If to let’s would and their go do they a star do I’ll the want and in flexibility flexibility, day, the come most they I podcasting. of could major they history Stitcher If busy, is could music, they play flex, Pandora. attracted was could other I say, on instance, show. monetization very the So, with second, if the them a conversation for the, but

in or to bucket. take spectrum buckets. And something I sometimes with we content Pandora a as want we’re have monetization, much podcast at Sirius, mean, to So, and have and mixing window on that an something now it, as dual back could war levels. monetized is many and they’re in looking at Stitcher sold have any the the is you it our of stop it But, lifestyles it importantly, okay musicians, the whatever comment all three wide there. artists call interim fit cases, more creators, can

better may in Jim, So, we that up years want much, tools monetization will five not I Jennifer while some did have much now or costs back, and ago. go cases it have

actually question. about excited that Stitcher the alluded I’m together So, the you to in

Operator

from question Barclays. take We go ahead. can our Kannan Venkateshwar Please now of next

Unidentified Analyst

Sirius to growth Jennifer, more devices It’s think do saturated; what secondly, anything as here? For [Technical market biggest is differently from different a the you opportunity threat you. from here? Do connected Thank lot And from in to it biggest it’s the here? do the structurally more was see than need Difficulty]. in you car. What’s you

Jim Meyer

Go ahead, Jennifer.

Jennifer Witz

Yes. landscape, didn’t I doing I mean, are differently. I’m catch changing we terms the in of your something name. But, just so sorry.

opens we And can just up just of a XXXL position can it car distribution. deliver, how lot the the incredible know, of just content we personalized volume us, but we for also with the opportunity in for and you as customer. So, have make new an

content provides opportunities us are the the use convert going better right listening customer customers in right And and surface what that like XXXL, customers. where is recommendations. and trialers were to back something to our and for we’re that’s what terms key can as being about, retain in we the the curation take to recommendations, And to and so, getting without And is more data talking to Scott able critical. our to serve of ultimately, that car, Jim challenging with

doing on something to what terms And continue different. of we will question? was of vehicles the in already grow, obviously, your time. part over road So, second And the that are I think the

Unidentified Analyst

opportunity address? what’s the biggest you biggest your Just growth threats that need from to

Jennifer Witz

offering, and SiriusXM we we on streaming still in invest in outside core talked And the product in like our to car call. growth earlier set we continue look, So, have about in car. the of our

car built streaming can that grow. have yet think I the But, it have there. where still opportunities standalone business small. I think not to of we out we It’s

for come still we’ve our our content haven’t that’s our talked quantified there’s yet. and also ad add I more the see continue second there. of SiriusXM on sales you’ll And think, then, a platform. And us you that like And growth. I to about feel so, I kind But, future on make there we improvements lot side. to apps to know, the thought

Jim Meyer

I period. just engines. longer Number comments. I’m about two not the at our not as want not I’m to -- all add term, one, acquisition about more think business I’m you concerned, concerned

about? see at will I earlier, believe have acquisition the be It’s growth ask said going night, It’s what awake a going But, is But, on side. thread, which be. where so to we you where the if going us. competitive much that’s you on or you’re ahead going on steady of believe so not and you worry retention what it’s I those we much effort to things. be would to side, why to time that’s if As spend keep I

better to well I we very how where the like I’d right products business comment comment understand we other understood how consumers is deliver investment and how Pandora. And to believe very, takes the understand And and understand kind be The on free it understand we acquired before than of works. what we business to be technology the that competitive streaming premium we to works. behave. business now there. the it the are understand way they -- We going We

as distribution you years, the should say our that, out area, streaming coming fair I that Now absorbed look it’s game all in that expect the to to the in you we’ve area. us up over think

have We right content. the

have than with those better game partners to, how work now. to understand they’ll economics that Nobody until distribution think reluctant we. work up that go. right how the where We’ve we brands. We don’t I We knows been understood and better

talk that I effort forward. you And going in area so, do if from about it back. that think see might you different, more we Take might things us

You will going in see forward. more effort area that from us

Operator

question next Fargo. Wells take Steve Cahall from We will Please of and our final go ahead.

Steve Cahall

and penetration on conversion. just first Maybe

a a are BMW tailwind. biggest a drivers guess on Toyota be conversion, drag and BMW the is in if my think probably might penetration. of right, I And Toyota but the increase that’s bit of is

us you then, through help So, we And wanted next couple ask years? penetration question. increase strategic get of over conversion a the think to you of this just Jennifer, in as kind could big I

pieces, But, all things. it now I’m lot now, we you’ve car, curious separate got the the to a platforms sense for Pandora. how to wondering a be I’m years if And work got digital from you’ve consumer oneX we’re and kind you’ve board It��s the or advertising the keep you for are So, integrated few going of makes just creators driving the community. pieces you able how think do about for in content all consumer? to got use of if because proposition the in Stitcher, me expect to the on different service, that SoundCloud,

Jim Meyer

Hey Jennifer, to belong questions I think you. both of those

Jennifer Witz

Sure.

Steve. thanks So, the question, for

did So, announce that on is we the ramping on that we and obviously conversion, penetration will -- Toyota XXX%, and to had be going now.

we’ve BMW but where right is the will you’ll driving the exactly be to now, the on in like rates seen. towards we side, XX% Overall, absolutely that the different beyond. our the right expect you’re that new XXs so, between penetration offsets I’m car brands. And sure see there conversion stay not obviously up and high some

rate, rate conversion does We the bringing have balances. on a Overall, subscribers we’re put we’ve pressure often platform. Higher before. penetration like into clearly more seen

help So, to have thing we’re we see dynamics I work how go into into continue our be your But, honest, the to offset rates year We’ll through strategic car. that. for tailwinds working then, hopefully rate. Pandora bring with the rates also conversion and comfortable to right out as those still high And we But how in so. it’s the penetration in in business. increases other see the conversion XXs, feel question, to I’ll next

to there. lot implementation, where means in to and brand Pandora and to stations is plan we the instances our have more our subscribers continue do in-car that We provide XXXL to a value Pandora

our of understand I the and brings. in us the And free it that think, opportunities kind there a capabilities offering to for car. base users are explore customer

near term. as mobile. Pandora But, looking do some and Android Auto, you in in car And other are still of kind is We’ll the our usage through is with test for there and in CarPlay would the growing We focus Pandora And streaming main SiriusXM about things. not going services. to we’ll our see to to are next consider But, them talk be opportunities. and and about closer now. our Investments year. not -- bring ways and more we apps ready into that talk to have products we’re together, there in to that able

Jim Meyer

you. Thank Thanks, you, And speak everybody, to Bye, everybody. Thank year. you, Thank next early bye. you participating. Steve. for we’ll

Jennifer Witz

Thank you.

Sirius XM (SIRI) 22 Oct 202020 Q3 Earnings call transcript