Satellite radio broadcaster, SiriusXM (SIRI), is partnering with Walmart (WMT) in an effort to attract new subscribers. SiriusXM will be added to the suite of perks offered by the discount retailer via its Walmart+ membership. Walmart+ subscribers already benefit from access to Paramount+ (PARA) video streaming as well as other rewards such as free shipping and discounts on fuel.
Between now and June 19, subscribers will also get SiriusXM as part of the bundled deal. Members will have the option to choose between satellite car-radio or app-based streaming
The deal comes on the heels of SiriusXM’s recently announced plans to cut 475 jobs, about 8% of its staff. The company has faced shrinking demand for in-car satellite radio, its primary revenue driver. Supply chain snarls that originated during the pandemic impacted the auto industry. In turn, this created a harmful domino effect driving soft sales at SiriusXM.
As a result, company executives anticipate weak subscriber growth and revenue relative to the second half of 2022. The Walmart+ deal was crafted to boost visibility and attract new subscribers.
The partnership is expected to sweeten the deal for subscribers while broadening the membership base at both companies. Industry experts estimate Walmart+ currently has between 11.5 and 32 million paid members. Last quarter, SiriusXM had a record 32.4 million paid subscribers. The satellite radio broadcaster anticipates trouble ahead if the slowing subscription growth it has experienced over the past few years continues.
While slowing subscriber growth isn’t ideal for companies like SiriusXM, these rough patches are forcing firms to get creative. This means that potential customers might get a discount on goods and services. While inflation has softened recently, prices for various items are still elevated. A free add-on never hurts, especially when many Americans are watching their wallets.
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