SiriusXM may have pivoted its focus back to its core satellite radio business nearly a year ago, but COO Wayne Thorsen says streaming still fits into its long-term growth strategy. He told investors at the Wells Fargo 9th Annual TMT Summit Tuesday that SiriusXM no longer sees the question as streaming-versus-satellite.
“I don’t really think of it as necessarily a streaming debate,” Thorsen said. “I think of it as how are we in a place where we can offer our content in a way that is most easily accessible?” Yet he said that while digital listening remains important, the company’s competitive advantage continues to come from the dashboard.
That accessibility centers on the rapid expansion of SiriusXM’s hybrid 360L radios. Thorsen said the platform now makes up over 50% of its new car trials and predicted it’ll reach 90% by 2030. Because 360L combines satellite delivery with an IP return path, it gives SiriusXM features once limited to streaming apps — personalized recommendations, interactivity, and artist-seeded stations. Thorsen called those tools a major driver of the company’s decision last December to sharpen its focus on the in-car experience.
Despite pulling back on unprofitable digital promotion, Thorsen said SiriusXM continues to grow its streaming product where it generates returns. “We’re still acquiring streaming subscribers,” he said, but in a more “ROI-positive” way.
Why The Car Still Leads
Thorsen reinforced the company’s deepest engagement remains tied to the vehicle, boasting SiriusXM still has “a lot of headroom in car,” and describing the in-vehicle environment as the company’s strongest and most reliable funnel to subscribers.
Among listeners with 360L radios who also use streaming, he said average usage now hits 28 days a month. As more vehicles ship with enhanced connectivity — and as SiriusXM continues cleaning up its identity and billing systems — he said the car becomes an even stronger funnel for retention, conversion and long-term subscriber value.
While auto sales have been unsettled by tariffs, the company is also moving aggressively to expand its used-car pipeline, which Thorsen called “a real opportunity.” He cited the sheer size of SiriusXM-enabled vehicles already on the road. The number of vehicles in operation with SiriusXM installed is “well over 100 million,” he said, creating a larger and more durable funnel than the new-car market alone.
Automakers are also embracing longer bundled subscriptions. Thorsen said SiriusXM is seeing significant momentum behind extended three-year trials included with vehicle purchases. While SiriusXM has not released specific figures, he said these programs are becoming a “more significant part” of the user base.
How Digital Fits In
SiriusXM’s strongest momentum in its streaming portfolio comes from podcasting and its off-platform ad network rather than the legacy Pandora music service. But Thorsen stressed the digital assets “all work together,” creating a larger footprint for advertisers. He pointed to what SiriusXM calls its digital cooperative — a mix of Pandora listeners and inventory from outside publishers. Thorsen said it reaches 160 million people a month, with 42 million a month coming from Pandora. “This is still a very significant business,” he said.
Pandora posted declines in both users and subscribers during third quarter and Thorsen acknowledged Pandora has been “struggling a little bit.” But he is encouraged by a “flattening of the decline” in Pandora’s monthly average user numbers and relatively steady total ad hours. The company has also been expanding integrations with major programmatic platforms, including Amazon and The Trade Desk to improve those sales. “We’re excited for the next steps in our transformation,” Thorsen said.
