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Sirius XM Holdings Inc. (SIRI) CEO Jennifer Witz Presents at Bank of America Securities 2021 Media, Communications and Entertainment Conference (Transcript)
SIRISirius XM(SIRI)2021-09-13 18:39

Company and Industry Overview * Company: Sirius XM Holdings Inc. (NASDAQ: SIRI) * Industry: Media, Communications, and Entertainment * Focus: Satellite radio, streaming audio, and advertising Key Growth Pillars 1. In-Vehicle Presence: Maintaining and expanding SiriusXM's dominant position in the car audio market. 2. Usage and Subscriptions Outside of the Vehicle: Growing digital subscriptions and expanding the ad platform. 3. Advertising Platform: Leveraging the extensive advertising platform for growth. Core Views and Arguments * Growth Outside of the Car: The CEO, Jennifer Witz, emphasized that growth outside of the car, including digital subscriptions and the ad platform, represents the greatest opportunity for growth in the next 3-5 years. * Content as a Differentiator: SiriusXM's strong content offerings, including curated content, live news, sports, and podcasts, are a key driver of its success and differentiation from competitors. * Churn Rate: SiriusXM has achieved a historically low churn rate of 1.5%, driven by a strong value proposition and improved customer experience. Other Important Points * Apple CarPlay and Android Auto: Despite concerns about competition from Apple CarPlay and Android Auto, SiriusXM has maintained its leading position in the car audio market and has not seen significant erosion in performance. * 360L Platform: The 360L platform is expected to be the default SiriusXM platform at all OEMs over time, improving content discovery and personalized experiences for consumers. * Digital Subscriptions: SiriusXM has a growing number of digital-only subscribers and is focused on expanding this segment through improved app experience and content offerings. * Pandora: Pandora is a key part of SiriusXM's strategy, with a focus on improving user experience, content, and distribution to slow listener declines. * SXM Media: SXM Media is a new sales organization that leverages the scale of SiriusXM's audio advertising platform and has been successful in closing major deals with advertisers. * Podcasting: Podcasting is a significant growth area for SiriusXM, with a focus on leveraging its strengths in content creation and distribution. * Content Strategy: SiriusXM focuses on providing a curated and diverse mix of content, including exclusive and non-exclusive offerings, to differentiate itself from competitors. * Liberty Media: Liberty Media owns approximately 80% of SiriusXM and has signed a tax-sharing agreement. The company's capital allocation strategy includes buybacks, dividends, and investment opportunities. * SXM-7 Insurance Proceeds: SiriusXM expects to receive all $225 million in insurance proceeds related to SXM-7 this year. * SXM-9 Launch: SXM-9 is expected to be launched about 3 years from now, following the completion of SXM-7 and SXM-10. * Capital Expenditures: SiriusXM has completed the SXM-7 and SXM-10 launches and is currently working on the next major ramp in capital expenditures.