• by Wayne Friedman , Staff Writer, Yesterday

Joining in the race of new low-cost consumer media platforms, Sirius XM -- the commercial-free satellite that has long delivered audio service for cars -- is adding a limited ad-supported plan for “less than $7 a month.”

This is in an effort to better compete with its audio-centric competitors, especially the streaming audio industry leader Spotify. SirusXM’s hope is to turn more in-car free trial consumers into long-term consumers.

The plan -- SiriusXM Play -- will be around $3 cheaper for access to around 130 music, talk shows, sports and other channels. This would be cheaper than its existing in-car satellite ad-free subscription plans starting at $9.99 a month, rising to $24.98 a month for its All-Access plan.

Has SiriusXM finally succumbed to the advertising following much in the same way Netflix has? Yes, but also other media streaming platforms as well.

The move, to an extent, is an effort to align itself more in streaming. The company’s audio streaming service Pandora, which Sirius acquired in February 2019, reaches 40 million active users and has ad-supported and premium options.

For years before it launched its ad option, Netflix resisted the ad-supported route -- trying to distinguish itself with brand appeal to take in consumers of its “premium” video service.

In much the same way -- going back to the origins of cable TV in the 1970s and 1980s -- HBO was "premium" TV -- an elite TV brand with the ad tagline ‘It’s not TV. It’s HBO.’

Fast forward to today. Warner Bros. Discovery has gone back to highlighting that brand name with its streaming service again being called “HBO Max.”

The trouble is, that brand seems to have been dinged a bit -- especially in its transitions to HBO Max at first, then Max, and now back to HBO Max. And to almost no one’s surprise, it also has a limited advertising-option.

The hope is that some of that brand patina can compete with Netflix on the same ground for its top shows like “The White Lotus” and “The Last of Us.”

Good news for Netflix. Little has seemingly changed with its brand when it comes to streaming. It continues to be a “must-have” streamer platform.

SiriusXM might not be exactly on the same level. The company says it reaches 160 million listeners a month. While it is strong in North America, Spotify and Apple Music globally have a much better worldwide reach. 

By way of comparison, in the first quarter, SiriusXM had around 33 million total paid subscribers, while Spotify had 268 million global subscribers as of the first quarter and Apple Music is at 93 million subscribers.

But wait... SiriusXM now being compared to Netflix?

Chief Operating Officer Wayne Thorsen said, speaking to CNBC: “What does this mean [for SiriusXM]?” He added: “I think that the example I’d probably use is Netflix. It had a very similar dilemma.

“They found themselves, at least domestically in the U.S., with slowing growth. They had to find a way to embrace something that was a little bit more price-conscious,” Thorsen said.

But better technology in cars -- for streaming -- also played a major role for rising Spotify and Apple Music adoption, which is added into the picture.

With consumers looking to find cheaper streaming and subscriptions everywhere, Sirius is looking to catch up -- and step on the gas.