Sirius XM Holdings Inc. (SIRI) Earnings Call Transcript

It's Nicole Ryan, host of the morning mash-up on SiriusXM Hits 1 and I'm super stoked to help kick off today's show by welcoming our CEO, Jennifer Witz.

Thank you all for joining us today, both in the room and on the live stream. At Sirius XM, we believe that the future of audio is one where everyone is effortlessly connected to the voices, stories and music they love. Today, we're going to showcase how we're bringing this vision to life. But before we go forward, let's talk about the past. Starting in the 1930s, AM/FM radio was the one and only place to discover and listen to new music for decades. And that all changed 2 decades ago when Sirius and XM pioneered the reinvention of radio. From uninterrupted listening coast-to-coast, to 24/7 commercial free channels, we led the charge in disrupting the traditional radio ecosystem and by extension, the entire audio discovery landscape. But we weren't alone. Mix tapes, then mixed CDs, then digital downloads at $0.99 a piece, made it easier than ever, not only to listen to the music you love, but also to curate it and share it with friends and family. That shift was nothing compared to the massive transformation audio has undergone over the past 10 years from the rapid adoption of subscription streaming on-demand platforms and the rise of podcasts to the advancements in listening hardware, including in the car, and at home and on mobile, technology has had an incredible impact on how, where and when consumers are tuning in. For most Americans, audio is a daily habit with over 4 hours spent listening to some form of audio content each day. Of that time, an estimated 2.5 hours are spent listening at home, another hour plus in the car and the rest everywhere in between. But figuring out what to listen to during all that time has gotten more and more complicated. In 2023, there are millions of songs and shows available with the push of a button or a simple voice command. Navigating through the noise, whether self curating or relying on algorithms has gotten overwhelming. The responsibility lies heavily with you, the listener to search and curate your own audio experience and discovering new music, podcasts or news tailored to your taste is harder than ever before. These fundamental shifts in the marketplace have created a paradox of choice and have resulted in a growing consumer demand for human curated audio. Research shows us that today's audio files are looking for a more cultivated fan experience and a more curated, more lean-back social listening. They are seeking community and connection amongst a hyperfragmented and overly saturated landscape. And this is where Sirius XM comes in. We have built an incredibly successful and profitable business by creating an experience centered on one of the most powerful emotional drivers in the world, sound. And we believe that today, our high-quality, premium curated radio is more relevant than ever. So what sets us apart from other audio services? It's our human touch. It's the people who curate our channels, it's the artists, the personalities, the content creators who drive a deep connection with their fans. And no one exemplifies this connection more than Howard Stern. Howard has this incredible ability to reach through the mic and connect with listeners across the nation with his can't miss live Show and Rich Library. He's the most successful voice in all of radio, the best interviewer in media and our great partner for over 17 years. We are thrilled to have him with us as we unveil the next generation of Sirius XM. So please join me in welcoming to the stage, the one and only Howard Stern.

First of all, I don't color my hair. You're all thinking I do. Welcome. I was -- first of all, Jennifer, you were really good, and I'm nervous now because I thought, well, Jennifer is not good on stage. I'll come out and everyone will be happy to see me. I mean that was impressive. Better teleprompter reading than anyone I've ever seen, certainly better than Trump. I mean, wow, what a CEO, you're the CEO, right? Of course, I know that. I know that. I know that. It's a funny thing, though. This morning, I had two guys on the air playing the xylophone with their p****. And yesterday, I was interviewing Barbra Streisand. And I go, if that doesn't sum up everything in my career. I mean, wow, you go from one thing to the other thing and no one can believe it, I can't believe I'm here. I'll be honest with you. I said no, I did not want to be here, but the Jennifer and Scott and everyone associated with the company said, you're going to be here if you want to stay here. I don't even know what here is. This is the shed. I'll tell you the truth, I hear the word shed, I get nervous. That means like farm house and it can take me somewhere, and I don't know, do weird things to me, but. No, I'm very happy to be here. In fact, watching that little inspirational film you were just looking at, it really actually moved me. I don't know if you know this, but when I was on regular boring radio with all the commercials and all the hassle and the government interfering with the show, things were looking bleak. And I thought maybe I'm at the end of my career. I can't go on like this. They're censoring the -- The commercial sometimes 17, 20 minutes of commercials an hour. People would tell me they get in their car and they get to work, and they never heard me. They would just hear commercials. And I really thought I was at the end of my career in a sense. And then I heard about satellite radio, and I started to investigate it, and I said, I really believe this is the future, and I made a bold prediction. I said, I want to go to satellite radio. I think we could have 30 million subscribers. Now mind you, when I met with Sirius, I think there were two subscribers, if I remember correctly. So it was -- everyone said, it's going to fail, you're stupid, you're ugly. And those were my parents. But anyway, the technology was there and I saw a future for radio, and I made all these grandio statements, satellite radio is the future. It's the death of AM and FM and everyone was laughing at me, and I mean it was -- all bets were like kind of like Stern is going to fail on satellite radio, and I really believed in this medium. I believe in the people working in this medium. And lo and behold, here we are. And there are so many millions of people paying for radio, but paying for a service that is so great, and I am such a fan of it. And for example, when we came over, the immediacy of how great this medium was, was apparent to me, I was talking with Chris Rock on the air. And we no longer were using euphemisms. We were no longer talking like little children alluding to things. Chris comes in, he's speaking his mind, and I said this is the promise that satellite radio has lived up to. We can go on, do our thing. Chris was free to express himself, I'm free to express myself. And I really began to change the way I looked at radio. I changed my approach. It offered new energy, a new life force. And I must tell you, I am the biggest fan of satellite radio. Even if I suck on the air one day, which is almost impossible. But let's say I'm having a bad day, and it's not funny. I know that any listener there can tune over and hear Mad Dog, they can hear Kevin Hart, they can hear Conan. There's enough content there, good content that our subscribers feel fulfilled. To me, Sirius XM was an oasis in a desert of censorship, the technology that I dreamed up, the freedom I dreamed of. I mean Sirius met all of my expectations. And anyway, so my mission, what is my mission coming here to see you? Honestly, I don't even know, but I'm winging it. My mission is to convince audiences that radio is worth paying for. And I think that mission continues to grow and just our approach in the cars. And now outside of the cars with the app and everything else is so terrific. They've done an unbelievable job with the car. So I think there's a bright future for Sirius. I truly do. I banked my career on it. And I got to tell you, 17 years with this company, and I'm really happy for the first time in my broadcast career. It is amazing how much money the company has invested in all of the people who work on the show. We've even developed some great technological advances. If you ever hear us interviewing musicians like with Bruce Springsteen, he came in with guitar and a piano and it sounded fantastic. I'm saying the sound, it blows away anything you ever heard. Artists have said to me, gee, the sound is better than when we're actually in a studio recording. So I'm particularly proud of that. Recently, we had Keith Richards of the Rolling Stones on. He was terrific. It was an adult conversation, a long-form interview for, I don't know, 2 hours or something like that. And it was just everything I could have imagined and more. Post Malone was on just fairly recently, he brought in a 5 string like a beautiful choir and 5 string orchestra, and he's performing there. And I'm just looking at this and marveling at how far our technology has come and how far this company has come. So again, I just say Bravo to Sirius XM for investing in the technology, but also in people. The staff that I have now working with me, I don't do it alone. I mentioned Robin Quivers, of course, who's been with me for a long time, but there are so many other people involved, too, who have brought expertise and humor, and I feel like we're developing the next generation of broadcasters. And yes, so anyway, everything is great. I won't be satisfied till -- let's see, it's now -- what is it now, Jennifer, Sirius XM Stitcher, Pandora, Chen Moonves, I don't know. I mean it's incredible. I won't be satisfied until we keep growing and growing and growing into the future. I want to complement Jennifer and what she's doing and Scott on the programming on Sirius XM. And it's just -- it's really just too good to be true. So I just wanted to come out here and tell you my enthusiasm for this company is through the roof. I am on board. I love it here. The programming is amazing, and now forget me, I'm so excited you guys are going to love this to introduce Taylor Swift. No, Taylor Swift isn't here, but she should be here. In fact, I'm too big to be here. I don't even know what I'm doing here. But in all seriousness, enjoy the rest of this. I'm going to go home, take a nap. I'm not getting younger. And thank you, Jennifer. Thank you, Scott and [ baba booey ] to you all, if you know what I mean. All right.

Well, thank you, Howard. As I was saying, with big personalities such as Howard filling our air, Sirius XM is an ever-present companion throughout the day from the moment our listeners wake up in the morning to dropping the kids off at school, heading to the office, working out, making dinner and relaxing at the end of the night, we're always there with just the right mix of music, news, sports, comedy, podcasts and storytelling. And because of this, consumers develop an emotional attachment to our content and service. This sense of companionship was never more present than during the pandemic. When our customer interviews revealed, we were a social surrogate for our listeners, the friend that kept them connected sonically even when they couldn't be together physically and part of their daily routine even when they weren't driving. This incredibly unique differentiated position gives us a huge opportunity for growth. So who are we trying to reach? Our core audience today represents about 25% of the audio market. They're Gen X and older and grew up listening to radio in the car and are accustomed to it. Then you have what we see as our growth audience opportunity. An additional 25% of the audio market, they're younger, more diverse and more varied in their audio consumption. These consumers are open to subscribing to more than one audio service to meet all their needs, and they're willing to pay for a premium experience. They are fueled by fandom and are used to listening wherever, whenever the mood strikes. While our core and our growth audience segments represent half of the general population, they represent 84% of total audio spend. And when it comes to attracting these new audiences, and keeping our core segments engaged, the heart of our value proposition is our unique content offering. As the home to more than 400 channels as well as tens of thousands of hours of Sirius XM produced on-demand audio content, not to mention podcasts, we truly have something for everyone. And you'll hear a lot more about our programming when our President and Chief Content Officer, Scott Greenstein, takes the stage a little later in the program, along with some very special guests. We know that once subscribers are in our ecosystem, they truly love our product. Just look at our incredibly low sustained churn rate. But to connect with a new generation of listeners, we needed to solve the barriers that exist today with this group and begin to transform our business. Traditionally, auto manufacturers have served as our primary source for trials. And while that continues to remain a key part of our business, over the last few years, consumer preferences have shifted and so have we. So while still early in the early stages, streaming has become a much bigger part of Sirius XM. And engagement with our app has a direct impact on our business metrics. Behaviors such as streaming early in trial, listening on multiple devices and tapping into our personalization features, all drive greater retention and conversion. Throughout today's event, we're going to give you a glimpse at the future of Sirius XM and how we're taking everything we've learned and evolving our company to meet the needs of all of our listeners. You'll see our refreshed brand and how we'll be speaking to new and existing customers, learn about all of our distribution relationships, both in the car and out and see some of the exciting new content coming to our platform. But perhaps most importantly, you'll get a first look at the new Sirius XM app, and the future of Sirius XM in and out of the car. I'm excited to announce the next generation of Sirius XM will begin to roll out on December 14. First, on streaming, followed by in car in the months and years ahead. It's a platform that not only addresses consumer demands for a more personalized, easy-to-use listening experience that drives discovery and puts our value proposition at the forefront, but it also modernizes our entire business, and we are improving every aspect of the customer life cycle. From the moment they first come into contact with Sirius XM to when they become a devoted fan. The launch beginning next month remains true to the best parts of what we are, live human curated audio, while making it more seamless for people to listen wherever, however and whenever they want. And I'm so excited to be sharing it with you all today. [Presentation]

Hey, what's up, guys? This is SwaggySie here from hip hop nation. And I hope you will join me in giving a very warm welcome to one of Sirius XM's newest leaders, chief Growth Officer, Suzi Watford.

Good morning. Sirius XM is a company primed for growth, and that's what excited me the most when I joined the company earlier this year. Having spent 2 decades in the publishing industry, I've seen firsthand the growing buzz around the power of audio. Fans, especially younger listeners are choosing audio as their preferred way to consume all types of content from new sports, comedy and entertainment to, of course, music. And at a time when we are suffering from a literal epidemic of loneliness, audio has the power to bring people together in a unique way. With a company like Sirius XM, we're faced with an embarrassment of riches, incredible programming, iconic personalities and a channel for every perspective. And this has led to an enthralled and engaged subscriber base that loves our service, but how we communicate our value and set ourselves apart in the marketplace is key, which is why we embarked on a new branding exercise in tandem with our new tech platform development. And what we've come to learn is that there's something that our core customers know that we need more people to discover. Sirius XM has a super power. In a world where so much consumption fills surface level, we give listeners the ability to go deeper and depth is what true fans want. Whether you're passionate about EDM, the real housewives or college basketball, we fuel fandom, allowing listeners to immerse themselves in the things they love. Our hosts and programmers are the #1 fans of their subculture. They're the players and coaches who change the game and the artists who pioneered the genre, the personalities who define the modern day interview and so much more. So our focus now is introducing this superpower to new audiences. We'll be showcasing that Sirius XM creates space for each and every one of us to get closer to the things we love because at our core, we bring listeners closer, closer to the memories, closer to the moments that matter, and closer to the things that you love, closer to the stars. So where we landed with our brand was somewhere fresh and new, withdraws on something that had in essence been hiding in plain sight. Sirius XM was born in the sky with our satellites lighting at the night alongside the stars. So with our new branding, we're embracing our roots and our future all in one. A star is a promise. It's an aspiration and an ideal and the logo embodies that are on our company's vision to shape the future of audio. At Sirius XM, we are home to the stars, the ones who are already legends and the legends in the making. And with this new branding, we have an opportunity to showcase how these stars are at the core of our value and to give them the spotlight. And as we look to the stars for our next chapter, there's one that we absolutely cannot discount. The brightest star in the sky is Sirius, also known as the Dogstar. So we're proud to bring back a mascot with a new twist. We're effectively calling this pup Stella, our newest addition to the company for long time plans of the Sirius XM brand, she's a callback. And for the next generation of our listeners, she helps charts the path forward. And although you won't see her in your everyday experience of our logo, you can expect Stella to pop up in front and engaging ways in our communications and brand. So now that we have our new branding and perspective, we need to introduce it to the world. At the beginning of 2024, we'll be kicking off one of our biggest marketing campaigns ever across all types of media. And of course, with the incredible depth and breadth of talent across our platform, we'll be using their star power to help propel our brand further into the zeitgeist. There's so much more to come, and I can't wait for you to see at all.

Hello, New York, this is Richard Blade from 1st wave. And today, I'm taking a break from playing the best alternative music of the '80s to introduce you to the ACE technologist himself, Chief Product and Technology Officer, Joe Inzerillo.

It's really amazing to see all that brand work come to life, especially Stella. But the reason I'm here today is because I'm one of those Sirius XM super fans, especially that 1st Wave. So thanks a lot for the intro, Richard. Sirius XM has a story history of cutting-edge technology. The company quite literally began with missions in the space. That in turn, pioneered state-of-the-art technology for broadcasting and listening to auto audio uninterrupted coast to coast. And we did something radically different for an entertainment company. We put the car at the center of the listening experience. And so it goes without saying that Sirius XM is not your average tech stack from literal rocket science to streaming with 2 different consumer applications. But where technology was very device focused in the past. Today, we need a company that has technology built for people. Now more than ever, consumers expect all of the devices, the car included to work with their preferences and as part of a journey for one continuous seamless experience. Today, we're thrilled to give you a glimpse of what we built in just under a year, and we call it the next generation of Sirius XM. This isn't just a new skin on our consumer application. This is a fundamental rebuilding of the entire tech platform from identity and commerce, so the unification of Sirius XM broadcast with capabilities with the Pandora music technology and the Stitcher podcast universe. It's all modern, performant and cloud native. It also adds the state-of-the-art Martech stack to enable us to more accurately reach and super serve our listeners across a multitude of platforms. And it introduces a whole new family of Sirius XM consumer applications that we will iterate on all year round. Now of special focus was the ability to more closely tie together in car experiences with streaming, and provide a connected experience for all listeners, regardless of where they're listening. And we're able to bring to life the best of what we do at Pandora inside of the new Sirius XM with features such as artist stations, which you'll see in a bit. Long term, we'll take all this incredible innovation and bring it back to Pandora, giving our ad-supported and algorithmically driven radio service, the same opportunity to shine as we are with our flagship product here today. Across all of this work, there are a few priorities that we kept top of mind. First, we want to stay true to ourselves. We know what we do best, live, always on, content creation across music, talk and sports, better than anybody else. But we needed to improve making it seamless for people to listen to it, how they want to, and this means we want you to find and listen to the content, whether it's live, on-demand or podcast. It also means simplifying the process of signing up, creating a profile and jumping into listening on your phone, at home or in the car. Discovery of content is notoriously hard and it's getting even harder every day, thanks to the growing content base that Jennifer referenced. Our approach to discovery is trying to get to that, I never knew you had that moment. Our hosted programmers are like the friend who makes you the perfect mix tape, acting as professional discovery engines that bring you closer, as Suzi highlighted. So within our product vision, we wanted to bring these connections and the curators to the forefront, mixing human touch with cutting-edge technology and artificial intelligence for an experience that just feels like it gets you. For example, Pandora music genome project provides track level insights from millions of human analyzed songs, which combined with world-class machine learning, amplify the voices and channels that we know you'll love. We're also taking into account things like time of day. For example, you might always want to listen to the same channel on your way to work, but you have very different preferences on your ride home. Same goes for sports fans. Your recommendations should look very different, depending on whether your team is playing or not. We want you to feel understood while still leaving room for all that discovery and the fun that comes with hearing about a great new artist or a show from your favorite host. So that's a lot of set up. But the best way to bring this all to life is to show you, and what I'm about to demo will begin rolling out in December, as Jennifer said, with certain features and platforms coming in 2024. And so now without further ado, introducing the new Sirius XM app. When a listener has dropped -- first dropped into Sirius XM, we want to get to know them a little better. So we begin by asking questions about you telling us what you like. As you can immediately see, we're presented with different content types from genres and artists to personalities and sports leagues. We've actually conducted a ton of research. And one of the things that we learned is that genre is actually a barrier for many listeners, especially those in younger generations because they don't really identify as a rock fan or a pop fan. They associate their taste with the artists themselves. So now I'm giving the opportunity to search for who or what I love. One of the pieces we really wanted to get right in the next generation of Sirius XM was search. Now when i type in John, I'll immediately presented with a variety of options to choose from even before I finish typing. In this case, I'm going to go with Mayer. John Mayer has joined my selection and all the related artists have popped up. Once I'm finished here, now brought into a quick selection of channels that I may like based upon those previous choices. Here, I'm able to just swipe through and sample along the way. We really wanted this to feel fun and engaging for the user, not a task to be slogged through. But at this point, I've now finished my onboarding journey, and I'm dropped into a 4U homepage, customized to my taste. This is where you can really see our focus on personalization and discovery come to life. I've got my morning picks, fresh finds and so much more, just curated for me. This new personalized welcome experience is central to what we're doing across all platforms. In fact, if I quickly turn on my [ Fire TV ] a moment, you can see how this carries through on the smart TVs and more. The presentation is a little bit different, but the choices I made on the phone carry through to my living room experience. But I'm going to go back to my phone right now and let's hop into BPM workout. As you can see, we have an all-new player with a sleek design and easy-to-use controls. But maybe this first song is not quite for me. So I'm going to skip it. Same goes for the next one. When we see a user is clearly not finding their groove. We work in an element of discovery. We want to lean into what we do best and reinvent that radio, turn the dial moment, giving the streaming listeners more control, but with a personalized list, so now I'm given the opportunity to pivot to a different channel. So let's go back to the homepage for a second. In addition to the centralized -- personalized centralized age, you can see there are other options on the top navigation bar. So let's take sports for an example. We have an incredible so much sports content, incredible variety of it, including live game feeds. So we're going to jump into the Giants Jets game. But as a fan of the Giants, I don't just want to listen to the game. I want to make sure I never missed a play. So I'm able to dive into the Giants page directly in the app, discover on-demand content that I can add to my library and sign up for notifications about when they're playing next. So I touched on search briefly during the onboarding process, but let's take a deeper look. When I go to the search bar, I'm immediately presented with a look at what's trending, which allows me to jump into hot channels and topics. But right now, I'm in the mood for Billy Eilish. So here we have Billy's dedicated landing site for fans to get closer to the stars that they love. And there's no better way to get closer than an interview with the one and only Howard Stern. One of the key features we've added to our talk player are these key moment markers, which power the ability to jump right into the part of the show that I'm looking for. So in this case, Billy talking about her performance on SNL, but I don't want to listen to the full interview right now. So I'm just going to go ahead and add it to my library. The library is where I can find all of my saved content in one place from all my favorite live channels and artists and podcast to on-demand episodes. I'm also a big Conan fan. So I'm looking forward to hearing his conversation with Dave Grohl. But pausing there for a moment. One of the most critical parts of our new technology platform is simply how it connects to your other devices. So I'm actually going to cast this over to my smart speaker and listen there. Now Sirius XM is known for its unparalleled listening experience in a car. So we're not just focused on better connecting you with the out-of-car experience -- with the in-car experience, but we're also bringing all of this innovation from the app natively into the vehicle. That's why I'm so excited to show you a glimpse of the future of Sirius XM in CAR. And to do so, we're taking you inside the all-electric all-new Cadillac LYRIQ, a pioneer in the industry is a new take on luxury, running our most advanced hybrid satellite and streaming platform, which gives subscribers the best of both worlds. Now what I'm about to show you is a prototype of SiriusXM that's not yet available in the LYRIQ or any vehicle on the road today. But we are giving you a glimpse as to what's coming across our fleet, and in particular, what's possible with car tech advantages such as the Android Automotive Operating System, or AAOS, which you're going to see in action here. So let's go ahead and check it out. So as a reminder, I had paused by podcast on my mobile app because I was about to get into my car and head to work. My colleague, Sean Gibbons, who heads up our automotive product and engineering will be kindly playing the role of me in the LYRIQ. The first thing I'm presented with is what we're calling ignition-on-recommendations. These are tailored to my listening preferences and also based on factors such as time of day. As you can see, I could jump right back into [indiscernible] but I'm actually in the mood for something a little different as they had to work. So let's hop into Spectrum top hits. Not only am I brought into my chosen channel, but I'm presented with other related content that gives me more recommendations without having to flip through the dial or search. We've expanded our in-car content catalog offering beyond our traditional satellite radio stations with the additions of podcast, artist stations and more. All right. I'm going to change the vibe. How about some Pop2K? So this is a thing where if I decide to skip a couple of songs and I'm not in the mood much like in streaming, I'm provided with personalized recommendations. So I can pivot to other content based upon my listening history. And who doesn't love a little radio, Andy?

I want to start by shaking things up and play some house lives through that, John.

So one of the things that sets SiriusXM apart for most entertainment companies is our level of engagement. From live call-ins to subscriber exclusive events. So we wanted to bring that experience into a car in a way that's natural and road safe. This is an example of a poll. Now I will not claim to be an expert on the Real Housewives house was but I'm going with Candy. Let's say it over to my customized homepage, which is full of enhanced recommendations that tie to the out-of-car experience and make it easier for me to discover new channels and content, optimized for use when I'm on the road. We're also continuing to enhance our voice search capabilities with more personalization backed in. So right now, I'd love to check in on how the giants are doing. Here, too, I can sort by content type, live channels, on-demand teams and more. Selecting giants, for example, brings me to a custom hub that's specifically for the team with more features and functions, including the ability to set start of game notifications, CD, upcoming games and tune into other content, which features the giants. So right now, I'm going to hop into moving the chains. We haven't yet another opportunity for in-car interactivity. And so when I vote, I'm immediately presented with an opportunity to tune into the live game. The possibilities here are truly endless. Once I get to the game, I already know the score because it's presented to me. And so I'm already up to speed on the context. And because of SiriusXM's unparalleled sports rights offering every team's broadcast for every game, I can access the feed that's right for me, toggling between announcers for both teams and to truly immerse myself in the game, I'm able to tap into the LYRIQ's cabin lighting to adopt my team's colors, letting me wrap in full force. All right, Sean. Thanks for driving. I think we're just about at our last stop. So let me be clear, December 14 is just the beginning. These features will be rolling out over the coming months and into 2024. And with the new platform, we are able to iterate and develop at a much faster pace than we have in the past. As you saw on the Cadillac, much of this exciting streaming technology and the innovation will be landing in the car starting next year. And what comes after that? Well, you'll just have to stay tuned.

This is Adam Schein, host of Schein on Sports on Mad Dog Sports Radio. And today, I have the privilege of welcoming out the quarterback of commercial. Chief Commercial Officer, Joe Verbrugge.

As Joe just showcased, we are looking to create the strongest offering for our current and future subscribers, whether that's in their vehicle or on their favorite streaming platform. My group is charged with bringing SiriusXM superpowers to life by getting our offering into the hands of millions of prospective subscribers from the incredible work that brand has done under Suzi to the relationships with distributors, both in and out of the car. Today, we're proud to be in more than 150 million vehicles, 150 million vehicles on the road. That's one for every 2 U.S. and Canadian citizens and we're in more than 80% of new cars sold and 50% of preowned vehicles sold, and that number is climbing each year. Our differentiated offering, including the best-in-class built for the world platform continues to make us the favorite premium solution for North American drivers. Now over the years, we have developed deep relationships with auto manufacturers with many of them dating back to the early 2000s. In fact, General Motors was the first automaker to begin factory installing on select Cadillac models in 2002, and we're so proud to have the LYRIQ here with us today. This year alone, we have renewed and expanded upon our agreements with Mercedes-Benz, with Volvo and Honda. Each of these major manufacturers have committed in the coming years to introducing 360L. It's our hybrid in-car audio platform that combines the best of streaming and satellite to give the best of both worlds. Additionally, I'm happy to announce today we are close to finalizing a new multiyear extension with Audi and Volkswagen. As the automotive industry continues to innovate, we are right alongside them. Take electric vehicles. Today, we are widely available in EVs, and I'm excited to announce a new agreement, this one with Polestar, which will introduce 360L as a standard feature in the model year 2024, Polestar 3. We are making very good progress with 2 other major EV manufacturers. And in the weeks ahead, we expect to have a significant announcements about additional 2024 launches. Importantly, given these vehicles are becoming increasingly software forward, our launches will cover both new vehicles as well as those already on the road, and we will be able to further update these experiences going forward. Our future in the car is extremely bright, especially as increased adoption of the Android Auto Automotive Operating System allows us to launch exciting features as they roll out at a faster pace. Outside of the vehicle, as we expand our streaming presence, we are focused on ensuring we have a robust and wide footprint for new customers to discover and fall in love with SiriusXM. At launch, our new app will be available on the App Store, on Google Play and on Fire TV devices, with additional streaming media players on the road map for the weeks and months ahead. And while we are focused on acquiring subscribers directly, we are also continuing to build relationships with other leading brands to further expand our reach and amplify our marketing. We are live today with some of the biggest brands, technology and consumer, ranging from T-Mobile to Walmart with offers that bring new listeners into SiriusXM through a variety of channels. And as we continue to expand these efforts, meet listeners everywhere, everywhere they are. I'm thrilled to announce that starting in mid-2024, the SiriusXM map will be available at select properties within the Hilton portfolio as part of its connected room experience. This opens the door for millions of guests visiting U.S. Hilton each year to try out SiriusXM, controlling their in-room entertainment from the Hilton Honors app and gives them the opportunity to continue listening at home for those looking to take a little piece of vacation with them. Agreements such as these help connect with people who may not have otherwise encountered SiriusXM in their day-to-day lives. We know our service is absolutely unmatched in the market. We just need to find new ways to connect with the right audiences. But it's not all about exposure. We also want to find unique ways to connect with all sorts of fandoms. So we thought why not work with the leader in premium, audio storytelling to bring new listeners and new content into both of our services. That's why I'm so excited to announce a new collaboration with Audible, which we expect to roll out early next year. And while we can't share too much detail on it at this time, we are looking forward to bringing select Audible content into SiriusXM and highlighting SiriusXM programming on Audible, giving each of our subscribers a chance to experience what the other has to offer. We've been quite busy so when you pair both our new and long-standing relationships with the vastly improved technologies the product team is developing, it offers us a very exciting commercial opportunity. Moving forward, we will be able to leverage and engage consumers more meaningfully and with personalized customer journeys, bringing them right into the content they love. We'll also be able to attract customers more efficiently and improve on our already strong customer retention. The overall flexibility to experiment, test and improve on our commercial capabilities, sets us up nicely for success tomorrow and far into the future. All of this gives us new ways to bring our incredible content to the masses.

Hello to you, I'm Gayle King, host of Gayle King in the House on SiriusXM Radio Andy and I'm so honored and thrilled to introduce today a very dear friend of mine, President and Chief Content Officer. Come on out, Mr. President, Scott Greenstein.

Thank you, everyone. Through the last 20 years at SiriusXM, I am so proud to have led the content evolution of this company. As we embark on this next chapter, what I'm most excited about is how all the innovation you've seen earlier today helps to bring to the forefront what makes us who we are, our content. Only SiriusXM brings you closer to the artist, host, newsmakers, celebrities and live events, you can't miss.

Hey, everybody. No, please stay seated. Please sit. Scott, did someone say celebrities?

Wow, Conan O'Brien, everyone.

Yes. Yes. Sit. Okay. Scott, if I hear the word celebrity. If I'm anywhere near stage, anywhere at all, near stage, I just appear. That's the magic of Conan O'Brien.

We actually don't need you to later.

Thank you, Scott, my dear friend in person who pays me. Goodbye, everybody. See you later.

Back to what I was saying about our content with sports, for example, only SiriusXM provides you with all the live sports you will ever need. You would need fixed streaming services to get access to all the games we broadcast with so many great games available. The new app makes it even easier for listeners to effortlessly access any game they want and only SiriusXM gives listeners direct interaction with coaches, players, insiders and many more. Now let's turn to music. Only SiriusXM brings the culture of the past, present and future to life. With devoted channels to the classics, throwbacks and to trends you haven't even heard of yet, across Hits 1, The Heat, Sound 42, TikTok Radio and many more.

Sorry, Scott, I couldn't resist I had to pop in.

Hi, Davis.

How are you? How are you?

Well, you are here to talk about trends. So why don't you tell everyone what's hot right now?

Yes. Well, obviously, me, just kidding. But all the trending tracks on TikTok, all the viral sounds. I bring it all the TikTok Radio audiences daily.

Ladies and gentlemen, Davis Burleson, one of our hosts on TikTok Radio. He brings our listeners trends before their trends. We're so happy to have him here and part of the SiriusXM family.

It's truly been an unreal experience to grow this channel, Scott. A few years ago, I started TikTok in my childhood bedroom. And now I live in New York, and I go to the SiriusXM studios and get to interview artists like Olivia Rodrigo, Troye Sivan. And sometimes when I walk into the room, they're like, "Oh, my god, I know you from TikTok, " and I'm like pinch me now and slap me in the face. So SiriusXM choosing to invest in creators from the TikTok community is -- and making them host literally is the new age of radio, and I'm so here for it.

Wow. Thanks, Davis. Before you go, can you let us know a song -- is that one song you can't get enough of right now on TikTok radio?

Of course, Scott. But I think I need an exit track. So I'm going to walk away, and we're going to play some Ice Spice. Okay? Bye, everyone.

Davis Burleson, everyone. So happy to have him here. Only SiriusXM is you're -- delivering fans more opportunities to get closer to the artist they love. This year alone, we've had so many outstanding moments. From Drake taking over the Apollo for historic 2 shows to opening our new Miami studio with Howard Stern and Pitbull. To Ed Sheeran in taking a break from stadiums to even play a bar on Long Island for SiriusXM and its subscribers. We've launched new channels like [indiscernible], Carrie's Country, our new channel with Carrie Underwood and pop-ups like Tupac, Beastie Boys and Selena Gomez. Alongside all of this music, the sports you heard about earlier is our original talk and podcast programming, our portfolio of podcast is absolutely unmatched. We've attracted some of the biggest names, including Conan O'Brien.

Great. Great. I'm back after an awkward pause. Hi, everybody. How are you doing?

Thank you for being here, Conan. Anything you'd like to say now about SiriusXM?

No, Scott, I'm good.

You came a long way. Anything at all?

Well, Scott, this is just off the top of my head. In the past 14 months alone, SiriusXM has launched and onboarded, a word I just made up a number of new podcasts, including Let’s Talk Off Camera with Kelly Ripa, the Mel Robbins Podcast, The Rachel Hollis Show, Sound Detectives with LeVar, The Deck Investigates with Ashley Flowers and so much more.

Conan, is that all?

No. There's a lot more on the prompter. Hey, as the leader in top radio over the past 2 decades, entering the podcast space, there's a no-brainer. I'll tell you that right now, given the company the flexibility [indiscernible] and me, Conan O'Brein.

Conan, you just mentioned [indiscernible] about 5 or 6 times.

Yes, Conan. Scott, since you brought it up. It's early. I'm excited to announce -- staying out late drinking. I'm excited to announce -- took some pills about an hour ago. [indiscernible]. I'm so cooked up. I'm excited to announce because early next week, we're adding new original Conan O'Brein content to the newly rebranded Conan O'Brien Radio every week.

Well, with all of that, including Conan O'Brien, I'm confident that we have the absolute best talk lineup in the industry. I'm also excited to welcome a new member today to the SiriusXM family. He's a legendary actor, writer, producer and presenter who made an indelible mark on late-night television, James Corden.

Hello, James Corden here talking to you from the set of my new show, which is exclusive to SiriusXM. The show is called This Life of Mine, and I will be joined in this very chair with some of the biggest guests on planet Earth, and we will talk about their lives. And we will talk about the people and the places, the music and memories they have made them who they are today, I couldn't be happier or more proud to be doing this with SiriusXM from the very first time I stepped into this building in New York City, Howard Stern Show. I could feel the energy and excitement of the place and I knew that this was a home that looks after and nurtures talent. I'm so excited, and I can't wait you to hear it only on SiriusXM.

It will be amazing. I can't wait for you all to hear James' new show. It's another absolute standout.

Okay, wait a minute. I'm sorry, you signed James Corden?

Yes, we did.

When we met, you said you would never work with another former late-night host. You said, I was more than enough for SiriusXM. That's a quote, an absolute quote.

Yes, but I think you have this wrong. He was a late, late night host, Conan. It's totally different. And by the way, thanks for coming by, Conan O'Brein. James will be -- James Corden will be a great interviewer. And the people he's talking to on the show are going to make for [indiscernible]. He already has many things planned and some already in the can. We can't be more excited for that. Along with all of this incredible talk content, as I noted earlier, music is at the heart of this company. In particular, we are incredibly proud of the special and unique relationship we have with musicians. Nothing brings you closer to your favorite band or musician like sitting back and listening to one of SiriusXM's artist channels. But don't take my word for it. Let's hear from John Mayer, who's launching his own channel later this month.

Everything in life is choices. What are you going to watch? What are you going to eat? Where do you want to go? It's lot of stuff to pick out all the time, especially with music. If you listen to different music at different times of the day, different weeks of the year. Genres aren't rock or pop or hiphop. The real genres of life are things like Mondays, dinners with family and songs I remember from junior high. Sunday morning, you're a little hung over, nothing over 100 beats per minute. I promise, mostly acoustic, make an omelete, Neil Young [indiscernible] is going to be great. This channel is not a 24/7 John Mayer jukebox. In fact, most of the music you hear won't even be mine. It will be music you and I both love by other artists, just curated by me, sync to your day. That's why I decided to start a SiriusXM channel called Life with John Mayer.

I love John's unique take on how to program this channel to match your day. And I'm so happy that SiriusXM can offer artists like John and others the kind of freedom to create something completely new and different. That's exactly why I wanted to bring up our next guest, Andy Cohen.

Hey, Scott. Hey, everybody. I just love what John is doing with his channel. He is so into it. I mean super committed. But the reason that I ran over here as soon as I just got off the air, from doing my SiriusXM show on Radio Andy, was because I heard Joe was doing an in-car demo of a Radio Andy pole.

Yes. You were playing [ Housewives Roulette ] and he voted for you to call Candy live on air.

Well, spoiler alert, Joe, she's more of a texter.

While you got here, I got to ask you. What went on in Vegas?

What didn't go on in Vegas? I just got back from BravoCon, which was a wild weekend. By the way, I ran into Radio Andy listeners everywhere I went, it was so gratifying then I did my radio show backstage on Monday with all the behind the scenes. And actually, Radio Andy did a full day of live BravoCon recaps on Monday, major, major content. It was a big deal for our listeners who couldn't be there.

Wow, that's just so great that you incorporated BravoCon and Radio Andy. And what would you say is coming up for the end of the year on Radio Any.

We, we got a lot of big plans for Radio Andy. We -- believe it or not, Amy Sedaris and I are getting ready for our ninth annual Radio Andy holiday hangout. This is 2 hours of live uncensored radio with me and Amy Sedaris, giving live -- thank you, holiday advice -- was that Conan? Oh, that was Kelly -- live holiday advice with a studio audience and listeners from around the country. I look forward to this all year because you never know what's going to happen and where it's going to go with Amy. I absolutely love it.

It sounds great, but am I invited?

Scott, I mean, you invite me to all the great SiriusXM concerts all year. So yes, I think so. I am delighted to announce, by the way, that today on SiriusXM, we are launching one of our latest artist channels Kelly Clarkson Connection. And to give all of you a taste of what you're going to be able to hear, please welcome to join me welcoming to the stage, Kelly Clarkson.

It's funny because I know that they want you to play our music on your channel, but it's the part where I'm like -- because you're like, "I want to get to the other stuff." I love -- I'm still excited. I don't even need to say thing like you could just sing and I was like, "Do you know me at all?" But I'm very excited about -- this is my favorite new thing I've been able to be a part of and also my band gets to be a part of in different ways. So we are very stoked. This is not one of those things where they're like, "You can do this for like a paycheck. This is not that much money." I'm doing it -- it's not -- I'm just going be honest with you. I mean, thank you. I'm appreciative. But I just mean it's not for the money. It's literally because I love music so much. I don't think that's a secret. I cover a lot of artists all the time. This one, in particular, we learned about 2 hours ago, which is normal for us. So anyway, I'm very [indiscernible] about the channel. I was going to say they don't even know this, but both my kids are born on the 12th and my channel is 12, which I thought was incredible. Anyway, I'm very excited. I just didn't want it to be an odd number. Everything would have gone to sh*t if it had been. I don't like odd numbers. Anyway, this is my band y'all. Give it up from my bands. They're incredible. And I'm like, no sh*t, we just learned this. So well, here we go. This is called Flowers by Miley Cyrus. [Presentation]

I was like, I don't want to leave. Literally learned -- we literally -- we got to learn a couple of more today for tomorrow. But we learn songs all the time. But that's actually one thing I love, they said I could have a button, I was promised, I better get this button, that I got to have a button in my house that I could just go live any time I want because I just think it's fun. And you never know what kind of moods you're in. And even when you mess up, I just think it's such a filtered world. It's nice. It's nice to like just be real and just be present. And -- it's not so nice to mess up -- whatever. But I love that song. It was hard for me to pick a song because we are just like on my channel, like we're doing like -- you will literally hear Miley. You will hear Frank Sinatra, [indiscernible], you'll hear Nirvana. You will hear Rosemary Clooney, Ella, like you will hear everything, Billie Eillish, like everything. I actually just added a few of [indiscernible] was like, wait, I love them. And you just think of things every day that you're like, wait this is really great music. So I just want people to like it for nostalgic reasons. You know some [indiscernible] you can hear that but also like introduce some new artists to that I know [indiscernible] been around for a while but -- and [indiscernible]. But like those are 2 artists that maybe people don't know as well. So there's just new artists that I want to introduce as well. But anyway, that's kind of the point of the channel. And also you're going to hear like live stuff like this because, fortunately, we have another job. We do a talk show. So we have a whole studio here. And we plan on doing live stuff as well. And if you hear that sexy announcer voice, that's [indiscernible]. They were like, do you know anybody with a great voice now was like, do I ever? Anyway shout-out [indiscernible] but we're involving like everybody on my team because I have a very -- weird umbrella. I like weird. So it's okay that I said weird although my daughter hates that word. But I just want to involve everything under it because I think it's important all of it so -- but you're going to hear like the hits as well. It's just like going to a concert. Okay, I'm going to play those 2. Like this one, you may have heard of it. Here you go. [Presentation]

What a performance. Thank you, Kelly. We are excited to launch the channel today, but that's not all we have in store. We've got a variety of new music channels launching, including 3 playing the best of the 2000s in alternative, R&B and hiphop. To tell you about more coming to SiriusXM today, please join me in welcoming Shaggy.

Hello, everybody. How are you doing? Looking good today? Nice. I've worked closely with SiriusXM over the years and I don't know if anybody on Sundays listen to my show Shaggy’s Yaad on Sirius FLY. It's pretty fly. I like that. Yes. But we go way back and SiriusXM and myself and Scott and [indiscernible] where she is and the whole team. But all the way back to the -- actually, I'm one of the first artists that actually came into these buildings, Scott, when it just started at a Sirius building. And so now it's a little bit special -- by the way, big up to Scott for always supporting our culture. If you know about Dancehall and Reggae culture, hiphop just celebrated 50 years that came from the culture of Dancehall and Reggae. Reggaeton, Which is a big $1 billion industry also came from the culture of Jamaica of my country. And if you see a lot -- even Afrobeat influenced by it. So it is great that we are going to announce a new 24-hour channel, Shaggy’s Boombastic Radio. And this channel is going to transport you to the Caribbean, emerging you into Reggae band, so Afrobeat. And I'm honored to say I'm not the only one -- actually one of our idols, my idols and certainly yours. The great Smokey Robinson is joining me and getting his own channel today Smokey Town -- Smokey's Town, actually. For anyone who knows Smokey is a storyteller like non other and he will give listeners a master class in [ Motown ]. As a fan I'm excited to hear him and to be alongside him, this only happens like you know, at SiriusXM. So Scott, thank you again, my brother.

Thank you so much, Shaggy. Shaggy, everybody. I can't wait for everyone to hear all of these new channels that you've heard about today and others that are launching. I know that's a lot of news to take in, but I do have one more special announcement. We talked about bringing listeners closer to artists. Their love with exclusive live concerts, full-time channels, pop-ups, but we wanted to take our listeners even closer. Many years ago, we pioneered guest DJ sessions, handing the keys over to artists, actors and many fans. So we thought why not take this concept one step further. That's why coming with the debut of the new app in December, we will be launching takeovers from over 175 artists on our biggest channels. From Olivia Rodrigo to Cardi B to Metallica, to Kane Brown and many more. And I'm thrilled, really thrilled to have one of these guest DJs here with me today. Please give him a warm welcome, to Maren Morris.