What SiriusXM buying Pandora might mean for listeners

The purchase agreement is valued at a whopping $3.5 billion.
Author:
Publish date:

SiriusXM announced Monday that it has agreed to purchase Pandora for $3.5 billion. 

The blockbuster purchase of the streaming music giant boosts SiriusXM's audience to approximately 106 million listeners, comprised of 36 million satellite radio listeners and 70 million Pandora users, according to The Verge. 

No immediate changes to either service are expected as SiriusXM and Pandora will continue to operate as separate brands.

To insiders, the company merger has been long coming since SiriusXM invested in a 19 percent stake in Pandora last year, according to Recode's Peter Kafka

What does it mean for users?

Kafka says the "obvious play is to use Pandora’s digital reach to both market Sirius’s existing service and to eventually migrate some Sirius customers there."

The move should also help Pandora stay in the fight against competitor streaming services like Spotify, Apple Music, Google and Amazon. 

"The addition of Pandora diversifies Sirius XM's revenue streams with the U.S.'s largest ad-supported audio offering, broadens our technical capabilities, and represents an exciting next step in our efforts to expand our reach out of the car even further," said SiriusXM CEO Jim Meyer in a release

That last part is key as Pandora's digital presence will likely help generate listenership beyond the automobile for SiriusXM, assuming they eventually make their satellite radio programming available on Pandora.

It's also a power move in satellite radio's competition with traditional radio, which continues to struggle. Earlier this year iHeartMedia filed bankruptcy, and it's future is clearly centered on the digital world and the iHeartRadio app.

Follow Bring Me The News on Instagram.

According to Motley Fool, anyone who thought satellite radio was simply bridging the gap between traditional radio's eventual move to digital/online couldn't have been more wrong: "Satellite-radio consumption continues to grow as its fan base of well-heeled drivers relish the seamless access to premium audio entertainment to score their daily commutes."

Motley Fool notes that while growth is slowing it is still trending up for S

Next Up

Screen Shot 2020-11-25 at 7.34.43 AM

Watch: Drunk squirrel in Minnesota captures the world's attention

The squirrel was immediately cut off after nearly tipping over.

Screen Shot 2020-11-25 at 7.15.09 PM

Small town gym refusing to close facing lawsuit from attorney general

The gym is facing a lawsuit and a temporary restraining order to halt their operations.

credit card, payment

Money Gal Coaching: Bouncing back after living your best life

Kelly Blodgett started Money Gal Coaching after paying down nearly $50K in debt in 18 months.

flickr-mall-of-america-mitchell-hirsch-march-2019

When do stores open on Black Friday this year?

Many major retailers will be open Black Friday, some for extended hours.

police tape, crime scene

Man found dead outside home near Cass Lake

The man was reportedly shot outside the property.

Minnesota_Welcome_Sign_-_Minnesota_Welcomes_You_-_Taylors_Falls_(28269804891)

Gov. Walz announces $1M in grants to boost Minnesota tourism

The money will be used for marketing efforts to attract people to Minnesota's hard-hit tourist spots.

coronavirus, ICU

Nov. 25 COVID-19 update: 72 deaths ties Minnesota's single-day high

A COVID-19 update will not be provided on Thanksgiving Day.

Texa-Tonka

Revival to open its fourth Twin Cities location

The fried chicken and smoked meat maestros are moving to St. Louis Park.

Duluth and Case Recreation Center

St. Paul to open two extra temporary shelters for homeless people

Mayor Melvin Carter announced the new shelters will be opened in the event of excess demand.

vote, election

Minnesota once again had the highest election turnout in the country

Amid the COVID-19 pandemic, a record percentage of voters also sent in absentee ballots.

Related

Joe Soucheray, Patrick Reusse on their way out at 1500ESPN

"Garage Logic" will continue as a podcast, Soucheray says.

Soucheray, Reusse sign off 1500 ESPN one last time

Their final shows were Friday as the station makes big changes.

Winstock

Winstock Country Musical Festival canceled, will return in 2021

The annual festival was due to be held June 12-13 in rural Winsted.

After 45 years in radio, WCCO's John Hines is retiring .... sort of

Hines will stay on full-time through the end of the state fair.