SiriusXM continues to feel the heat from Donald Trump threatening tariffs on automakers.
Currently, there’s a hint of apprehension and carefulness in our outlook regarding the direction of our advertising revenue, as shared by SiriusXM Chief Financial Officer Thomas Barry at the Deutsche Bank Media, Internet & Telecom Conference on Tuesday. This event was broadcast live.
The latest suspension of tariffs for the major automakers by the U.S. President has created ambiguity concerning SiriusXM and the advertising sector. As Barry explained, given the current economic context marked by tariffs, inflation, and general market uncertainty, these factors seem to be negatively affecting the ad space.
Or:
The recent halt in tariffs for the Big Three car manufacturers by the U.S. President has left a question mark over SiriusXM and the advertising industry. Barry stated that considering the economic landscape with tariffs, inflation, and overall market uncertainty, these elements appear to be having a detrimental impact on the ad space.
He recently repeated statements made by Jennifer Witz, CEO of SiriusXM, at a Morgan Stanley conference last week. At this event, she expressed her belief that the initial two months of 2025 had a robust ad market. However, this was before it was announced that U.S. automakers would receive a one-month tariff exemption in the midst of an escalating cross-border trade war.
The overall effect is that Trump’s tariffs, whether enforced or postponed, along with countermeasures taken by Canada and Mexico, are raising the cost of purchasing new cars. This situation affects SiriusXM particularly as they aim to launch their ad-supported tier later this year. Barry mentioned a decrease in growth over the past fortnight, or roughly ten days.
Last year, the financial head of the company delved into discussions about SiriusXM, indicating a move towards reducing substantial investments in acquiring streaming subscribers. Instead, they aimed to prioritize cost-cutting measures and strengthen their car subscription service.
Barry emphasized that streaming remains crucial within our system, however, moving forward, the company’s primary attention will be on subscribers using streaming services within cars, as SiriusXM has reduced spending in this area. In a strategic move, SiriusXM introduced a streaming app towards the end of 2023, aimed at both in-car and external listening, which many viewed as a direct competitor to Spotify.
Currently, our attention is primarily directed towards in-vehicle audio experiences, rather than other areas. In essence, when considering all the aspects that require attention, it’s clear that we’re concentrating, narrowing down the scope a bit, and zeroing in on where the maximum profitability lies within this business – which happens to be inside the vehicle. This is Barry’s viewpoint.
Read More
- Alec Baldwin’s TLC Reality Show Got A Release Date And There’s At Least One Reason I’ll Definitely Be Checking This One Out
- Rick Owens Gives RIMOWA’s Cabin Roller a Bronze Patina
- Cookie Run Kingdom Town Square Vault password
- NEIGHBORHOOD Unveils SS25 Collection Featuring Keffiyeh-Inspired Pieces
- Unveiling the Enchanting World of Peer-to-Peer Crypto: A Witty Guide
- Disney+ Lost A Ton Of Subscribers After The Company Raised Prices, But It Didn’t Seem To Matter For Another Streamer
- Judge Fines Oregon Man with $120 Million in Crypto Fraud Case
- After The Odyssey’s First Look At Matt Damon’s Odysseus, Fans Think They’ve Figured Out Who Tom Holland Is Playing
- BitGo’s New OTC Desk: Where Crypto Meets Wall Street’s Wild Side!
- Nadaaniyan song Galatfehmi OUT: Ibrahim Ali Khan, Khushi Kapoor’s heartbreaking separation in love will leave you emotional
2025-03-11 21:54