why satellite radio

The Future of Satellite Radio

Are we going to judge the future of satellite radio by the number of total active subscribers, financial records or the number of total acquisitions?  There are myriads of factors that will determine how the satellite FM radios will be by the year 2030. Even though it’s totally impossible to predict the happenings of the future, we can use the past and now to create a picture of how the future shall be.

Since the merger of Sirius and XM to form Sirius XM in 2008, the numbers of satellite radio stations have been on the rise. With the demand for more diverse digital content growing every day, the best satellite radio now has 140 channels covering ad-free music, comedy, news, sports and many more.

Satellite Radio Brief History

How the pioneers of satellite radio companies went bankrupt is probably the reason why the question-What is the future of satellite radio? – continues to baffle many potential clients and subscribers. But is it pragmatic to use this past black history to predict the future?

For us to predict what the satellite radio future holds, let’s first know how satellite radio providers have performed over the past years. Before the fall of the pioneer satellite radio provider (WorldSpace) in 2009, the other two satellite radio providers Sirius Satellite Radio and XM Satellite had merged. This was after it was crystal clear their future would not last the first quarter of 2009. They rebranded to SiriusXM. This company now operates in the USA and Canada.

best satellite radio

It was until 2011 when SiriusXM FM radio announced the paid subscription plans, which would later be their turning point. As seen from the graphical representation below from the SiriusXM news, it’s evident that most of the financial years have been steadily growing. Is it an indication of a better future or just a stroke of good luck that favoured their growth factors?

The Best Satellite Radio in Numbers

To get these statistics, we are going to use Statista, which is a renowned world research company. The number of SiriusXM subscribers during the first quarter of 2011 was recorded as 20.56 million. As of the third quarter of 2019, the number had grown by over 10% to reach 34.55 million.

Since we attribute this progressive growth to the increased subscribers, how many net paying subscribers are setting these positive results? The first quarter of 2019 saw SiriusXM increase their self-paying subscribers by 132 thousand thereby reaching their highest number of 29.1 million. In early 2020, SiriusXM in a press release indicated another increase in net paying subscribers. It was 900 thousand new subscribers.

In terms of revenue, the recorded revenue in 2011 stood at $3.01 Billion. In their fourth quarter of 2019, the financial results hit 7.8$ million. This was a 35% increase compared to the previous years. Despite a series of costly expenditures like the acquisition of Pandora, the numbers continued to soar up.  The Pro Forma revenue as of

The most awaited Sirius XM numbers by investors, stakeholders and the die-hard subscribers and funs were the profits. And this did not let them down as the gross profit grew by 7%. Even though the costs went up by 6% to $596 million in 2019, the gross profits went higher –thanks to the higher revenue share and increased royalties and programs. The profits totalled $970 million in the same year.

satellite radio statistics

What is The Future of Satellite Radio

If the press release by Jim Meyer during the release of SiriusXM financial results 2019 were to be construed and given an optimistic nod, this radio company would be the choice of every investor. All records combined with the series of investments meant to increase their revenue give a glimpse of a bright future ahead.

Here are the indicators of what the future of satellite radio would be like if all variants remain constant:

  • The acquisition of Pandora in 2019- There are a lot of gains already since the acquisition of Pandora. Revenue ads have grown to 315$ million -an increase of 8% from 2018.
  • Sirius XM partnership with automotive companies to install satellite radio in their vehicles – Automotive manufactures like Toyota, Lexus, Lamborghini, Mercedes-Benz and many more will definitely increase the number of net paying subscribers. Translating the number of vehicles bought every day in USA and Canada to subscribers would mean millions on new customers annually.
  • Increase in SiriusXM channels – To widen their audience and attract more potential clients the number of channels as of today are over 175. They cover sports, free ad music, interviews, news, comedy, weather and many more.
  •  Sirius XM investment in to SoundCloud – In their bid to create more avenues for growth, SiriusXM company has invested 75$ million in SoundCloud.

With the above concrete plans by SiriusXM Holdings, what do you think is the future of satellite radio?

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