SiriusXM Bets Big on Ads With Launch of New Cheaper Subscription Plan

SiriusXM is changing the dial on its business model. Known for offering commercial-free content in cars, the audio giant has introduced a new ad-supported subscription tier called SiriusXM Play. Starting at under $7 a month, the new plan gives users access to over 130 channels and aims to convert more free trial users into paying customers by offering a budget-friendly option that includes limited commercials.

The new strategy comes as SiriusXM faces stiff competition from streaming platforms like Spotify and Apple Music. By embracing advertising, the company hopes to re-engage millions of lapsed in-car trial listeners and maintain profitability during a tough ad market. Executives say the service won’t replace the classic ad-free model but will offer more flexibility for cost-conscious consumers.

This move marks a broader shift at SiriusXM, which is now focusing heavily on in-car services and targeted growth after spinning off from Liberty Media. With 33 million subscribers and a declining profit margin, the company is hoping that SiriusXM Play — along with its expanding podcast and streaming presence — will steer its revenue back on track.