(LR) Scott Greenstein, Kevin Hart, Ashley Flowers and Kelly Clarkson speak onstage during the SiriusXM Next Generation: Industry & Press Preview at Tisch Skylights at The Shed on November 8, 2023 in New York City.

Bryan Bedder | Getty Images Entertainment

SiriusXM said Wednesday it will launch a revamped app and streaming plan with new pricing to attract younger customers.

The company will launch the offerings on December 14th, first as streaming and later as vehicle interfaces. The price of the new plan is $9.99 per month.

“Our growth audience is millennials and younger who are willing to pay for an experience,” CEO Jennifer Witz said during an event Wednesday where the company unveiled the new services. The star-studded event included appearances from Howard Stern, Conan O’Brien, Andy Cohen and Kevin Hart, as well as an appearance from Kelly Clarkson.

The satellite radio company, which is home to notable hosts like Howard Stern and Andy Cohen, hopes that millennials and younger generations, many of whom are used to Spotify or Apple Music, will feel at home with its new app interface. The move comes as Sirius looks for a jolt to emerge from stagnant sales and a 20% fall in its share price this year.

Listeners now have “always-on” curation and a personalized library with four new channels on the app landing page: Music, Talk & Podcasts, Sports and For You. The app will also offer features such as improved search, improved podcast listening and better content discovery, the company said in a press release.

“The current app just puts our radio on the phone,” Chief Product and Technology Officer Joe Inzerillo told CNBC. “This new app will offer more, which will then be reflected in the car.”

The new platform allows listeners to pick up where they left off on any device, including car, phone or Fire TV. This means those watching a podcast, interview or sports game can listen on another device without losing their seat.

“Usually we see [the improved listening experience] This contributes to lower churn and higher conversion, driving net gains and higher customer lifetime value over time,” Morgan Stanley wrote in a note Thursday.

SiriusXM has been losing subscribers recently as it reported a loss of 94,000 satellite radio subscribers in the third quarter.

The company hopes what Witz called a “human touch” will set SiriusXM apart from other streaming competitors. Music superstars Dolly Parton, Kelly Clarkson and John Mayer are launching new, year-round SiriusXM channels this month, showcasing their hand-picked songs.

The company is also simplifying its pricing structure, offering its new streaming all-access plan for $9.99 per month, a dollar cheaper than its current all-inclusive streaming plan. The cheaper price is another attempt to attract millennials and younger customers who may already be paying for another streaming service.

“We view this as a complementary product,” Witz told CNBC on Wednesday. “We know people already have a separate music library, but we’re here to discover it.”

Analysts at Morgan Stanley believe the changes could help the company attract younger listeners.

“We see the opportunity for the new product to help expand the base to younger, more often streaming-only consumers,” Thursday’s statement said. “The newly announced price of $9.99 per month might help. We find that the product will have to compete with stronger competition (e.g. Spotify, Apple, Amazon) compared to its in-car product compared to AM/FM radio.”

The company also continues to make progress with satellite radio compatibility in new cars. Select 2024 Polestar models will feature SiriusXM 360L technology, which combines satellite and streaming capabilities, the company announced Wednesday.

Source : www.cnbc.com

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