Q1 2021 Sirius XM Holdings Inc Earnings Call
Good morning, and welcome to Sirius XM, the first quarter 2021 financial and operating results Conference call. Today's conference is being recorded.
A question and answer session will be conducted following the presentation.
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At this time I'd like to turn the call over to Mr. Hooper Stevens Senior Vice President Investor Relations and Finance Mr. Stevens. Please go ahead.
Thank you and good morning, everyone welcome to the Sirius XM. The first quarter 2021 earnings conference call. Today, we will have prepared remarks from Jennifer Witz, Our Chief Executive Officer, and Sean Sullivan, Our Chief Financial Officer, Scott Greenstein, our President and Chief content Officer will join.
Jennifer and Sean to take your questions I would like to remind everyone that certain statements made during the call might be forward looking statements as the term is defined in the private Securities Litigation Reform Act of 1995. These and all forward looking statements are based on management's current beliefs and expectations and necessarily depend upon assumptions data or methods that maybe incorrect or imprecise.
Such forward looking statements are subject to risks and uncertainties that could cause actual results to differ materially for more information about those risks and uncertainties. Please view Sirius <unk> SEC filings and today's earnings release, we advise listeners to not rely unduly on forward looking statements of disclaim any intent or obligation to update them with that I'll hand, it to Jennifer good morning.
And thank you for joining our first quarter call Sirius XM turned in a great performance across the board like many companies. We are benefiting from the Americans getting back on the road growing auto sales and consumer income bolstered by significant federal stimulus. These impressive results are also a strong testament to the demand for <unk>.
<unk> costs out of our resilient business model and once again, our team flawlessly executing the strategies we laid out.
Sirius XM is the Premier of audio Entertainment company in North America across our properties of approximately 150 million users, while you're only listen to our content much of it premium unique and expertly curated covering everything from music talk news sports comedy and podcasts I'd be remiss.
If I didn't mention upfront that dray.
<unk> of global Superstar and one of the most streamed the artists in the World in March launched the highly anticipated exclusive of Sirius XM channel sound forty-two, bringing his diverse musical page one of millions of subscribers for the first time ever. We have also enabled non subscribers to tune in via an open Act.
The option, we set up for this channel.
Our business model the best in audio powered by complementary subscription and advertising engines has made us the most profitable audio company in the World you are already familiar with our world class capabilities on the subscription side and on the advertising side. We now have the tools to serve as a one stop shop for them.
Both advertisers looking to efficiently by large audio audiences and for audio content creators looking to distribute and monetize their content.
Are truly a unique company with a mix of the assets and skills founder of warehouse and as I mentioned, our year is off to a great start we achieved record low first quarter churn of just one 6% driving an 83% increase in our Sirius XM self pay net subscriber additions to 126000.
Up from 69000 in the first quarter of 2020.
Our revenue growth of 5% was bolstered by a rebounding advertising market and our off platform and podcast expense adjusted EBITDA of 682 million declined 7% and was the highest single quarter EBITDA figure in our company's history, we are well on track to achieve our full year of subscriber and <unk>.
Actual guidance automotive Saar was the phenomenal $16 8 million in the first quarter up 14% in the first quarter of 2020 and led by an astounding $17 7 million in March we generated more trial starts in March than in any single month in our company's history still we are carefully following the news.
The about silicon shortages and frequently speaking with the automakers.
Now for the uncertainty and the historically low auto inventories being reported we would most likely the increasing our subscriber guidance today remember.
Remember the Sirius XM in vehicle is no longer a purely based on our one way network I'll discuss more about 360 Allen of moment, but the next generation platform now and close to 2 million vehicles gives us new insights about consumer behavior. For instance, it has helped give us valuable insight into the COVID-19 recovery, which.
So is that driving a new day in the first quarter, we're still only 80% of pre COVID-19 levels, but in recent weeks has climbed to 90% of pre COVID-19 levels of positive sign that people are getting back to normalized it's tremendously exciting to have this growing collection of data at our fingertips and this dataset will go up dramatically.
Over the next few years of 360 L becomes the default Sirius XM platform in vehicle 360, L deployment as a percentage of new vehicle trial starts were about 18% in the first quarter and we are on track for free ECL to reach about 25% of this year of Sirius XM enabled installed 360 L.
Is the plan of record with most of OEM and at the adoption will continue to climb over the next several years the.
The two way functionality and advanced UI enabled by 360 I'll open up a host of engaging features for consumers and new capabilities for our business. We are also utilizing consumption data from 360 L to help optimize our one to one marketing efforts to drive better conversion retention and pricing.
This is still new for us and we have much to refi that with growing volumes and experience we are well on our way to enhancing both the consumer experience and business performance from our next generation Sirius XM platform.
Sirius XM <unk> continued its steady climb up nearly 3% of the first quarter of 2020 age of $14 30, and demonstrating the high value of our subscribers placed on our premium content bundle and easy to use service the <unk>.
Demand for our all access package has encouraged us to create a new top tier high end offering that will include additional content exclusive of customer benefit and multiple access points of sort of Super premium family plan the plan.
To launch this new offering in the coming months.
We're also making progress driving out of car screen day, among Sirius XM subscribers and gaining more subscribers, who don't need an N vehicles subscription we find that higher engagement outside the vehicle and more of listening of across the households lead to better in vehicle conversion rates and retention performance. So we will continue to invest in these efforts.
Continuing the recovery trend in the back half of 2020, our advertising business has rebounded from the pandemic low and we see steady momentum so far in 2021, historically AD revenue is seasonally slower in the first quarter of the year, but even still we managed to achieve revenue of $354 million of 24%.
The increase from the prior year period, we're very proud of our position as the largest digital audio AD platform in North America, enabling advertisers to reach almost two thirds of online audio listeners with our on and off platform ad products.
Sure adds to our opportunity in advertising with greater access to the fast growing podcast that net hit your head of record quarter and we are extremely impressed with its performance. So far we launched the Atlas obscure our podcast, which hit the top 10 on the Apple podcast charts. In addition, this week, we announced the acquisition of 99% of.
This ball, which furthers the expansion of Sirius XM podcast in the universe and deepens, our content creation skill set robin Marty and his talented team of 99% of it as well we will continue to work with us to develop new podcast projects.
Ashwin is the global leader in digital audio and podcast technology solution has reached a significant milestone of over 1 billion monthly podcast downloads premise audio platform.
Platform, which is used by leading media company and podcast publishers, including NPR, The New York Times, NBC Universal Newsgroup American public media, Wnyc's Studios, and Roger Sports and media and Canada, combined publishing tools and audience analytics from simple cash with.
Our award winning suite of monetization products and services.
With cash power score of the most popular podcasts in the U S. The daily news now up first and Dateline NBC.
Pandora has tremendous scale remains the cornerstone of our success in AD sales and while Pandora of engagement overall remains a challenge we do see encouraging growth in the use of Pandora in vehicle further when listeners use our mode feature to tailor their personalized music, we see of meaningful uptick in Loopnet as Pandora is one of.
The larger AD supported apps on iOS, we are keeping a close watch on IV FAA development and should be relatively well positioned to manage that transition with our considerable first party data.
We never stop thinking of creative ways to enhance the variety and value of the programming, we deliver to our customers and in the first quarter of Sirius XM made several high profile of additions that further solidified our position as the best provider of curated audio programming North America, we already talked about Drake. In addition, we recently unveiled more of the.
The 30, new Sirius XM streaming music channel that go deep with specific artists, including exclusive channels from Bob Marley Ll Cool J, Armin Van Buren, and Steve Aoki Atmos Drake the biggest artisan brands of music our platform as the medium for them to share of music pursue creative exploration.
And expressed there won't be as true.
Throughout Black history month, we presented several of Sirius XM channel that honored pioneering black artists and Pandora launched wake up both on the Black music Forever station, Pandora and Sirius XM and catcher all back the scan personic diversity pledged with the goal of increasing the number of voices of people of color.
An audio advertising.
Interest three months, our Pandora alive powered by women virtual event featured performances by whilst of Bonnie and Jasmine Sullivan and with hosted by hold of cost based on Sirius XM is today show radio on Sirius XM 15 different channel celebrated the women of classic rock jazz Eighty's Ninety's country and hip hop.
In the podcast space, we debuted original exclusive podcasts from Marvel and Sirius XM, Marvel's Declassify and Marvel method launched wildly on Sirius XM, Pandora Stitcher, and all major platforms furthering our efforts to deliver the best and most comprehensive sports programming and similar to our recently.
Expanded agreements with the NFL and NBA, we signed a new agreement with major League baseball that extends our relationship for multiple years and also expands our streaming rights. We now offer every MLB games. In addition to every NFL and NBA games as part of our Premier digital only subscription this enabled our subscribe.
The stream all of the games on our App and the 360 L and they can even choose to hear their favorite teams announcers per every game.
Earlier. This month, we also produced and presented our first masters as the tournament exclusive of audio broadcaster, Greg Norman one of golf all time, great players served as our lead analysts and we continue to unveil important collaborations to deliver our content of more and more of listeners we teamed up with T mobile to deliver.
<unk> a first of its kind Pandora experienced the T. Mobile customers that include the AD free radio weekend special music stations powered by popular Sirius XM channel and early access to Sirius XM original podcasts, we are looking to launch additional collaborations with T mobile in the future.
Solid advertising gross effect of investments and compelling content and robust digital products and a resilient growing self pay subscriber base has solidified our premier position in the audio entertainment industry.
Our first quarter results give us high confidence in our full year outlook and the long term position of our business with that I will pass it over to Sean.
Thank you Jennifer and good morning, everyone as Jennifer highlighted our first quarter results were strong as we continued to rebound from a volatile year investing in new content, while generating revenue and adjusted EBITDA growth from our business total revenue increased 5% to 2 billion driven by sharp growth in advertising revenue of 24%. The addition of <unk>.
The Stitcher, which we acquired in Q4 of 2020, coupled with growth in both our on and off platform businesses, including ads, which contributed to the advertising revenue growth year over year, adjusted EBITDA increased 7% of $682 million diluted earnings per share were five cents or <unk> <unk>.
Clothing onetime items, including the satellite impairment, an impairment related to office leases and a onetime tax settlement benefit with respect to the one time items our results reflect the $220 million noncash impairment charge for the Essex and <unk> satellite failure, which was announced in January we have issued a request for proposal to construct the.
The new satellite to replace the <unk> seven the we're currently working through the insurance process and we will book the likely insurance recovery in the future period.
We also incurred of $25 million noncash impairment charge related to office leases that we ceased occupying as we make more efficient use of our space going forward. These noncash impairment charges are excluded from adjusted EBITDA and lastly, we also realized a $95 million benefit to income tax expense, resulting from a favorable state.
Tax settlement.
In terms of free cash flow, we generate $211 million per the quarter on lower contractual OEM receipts, plus higher royalty and cash interest payments turning to the Sirius XM segment revenue increased 2% to $1 6 billion with <unk> growth of 3% to $14 30, and gross profit remained steady.
As Jennifer mentioned automotive sales saw a boost of the opening months of 2021 with March Saar landing at $17 7 million, a 55% increase from March of 2020.
While consumer demand for new and used vehicles, the strong the growing silicon supply shortages could limit further upside.
<unk> added 126000, net new self pay subscribers ending the quarter with $31 million total self pay subs churn improved to one 6% of first quarter record and Sirius XM ended the quarter with $34 5 million total subscribers.
The new vehicle trial structure adjustments of two automakers and to a lesser extent lower vehicle shipments due to the silicon supply constraints contributed to negative paid trial net additions during the quarter for the full year, we expect the ending paid trial base. The shrink by approximately $1 5 million as these new agreements cycle into place with variability to the east.
And it's driven by changes in auto sales and inventories.
As a reminder, this doesn't affect total trial starts, which we still expect to grow at the fastest rate since 2015, two of approximately $24 million during 2021.
Moving now to the Pandora segment the engine of growth for the Pandora business as advertising, which saw a 29% increase in revenue to $312 million compared to the prior year period growth in monetization of Pandora was aided by the addition of stitcher kind of growing off platform business center around ads.
Pandora's AD monetization was strong at $86 per thousand hours, a 27% increase year over year and a record first quarter high RPM and off platform revenue, excluding stitcher, Brooks proximately $14 million or 48% compared to the first quarter of 2020.
Bookings were strong across the board during the first quarter financial service companies increased spending we saw gains from telcos and even retail driven by grocery and big box retailers telemedicine AD spending jumped and farmer grew to reemphasize spending on core drug brands as we look into the second quarter, we're seeing that broad strength continue.
Plus we're now starting to see real gains in travel and tourism spending after a year of those categories being dark <unk>.
Pandora monthly active users and total AD supported listening hours from $56 million and $2 $87 billion, respectively. Pandora added 113000, net new self pay subscribers ending the first quarter was $6 4 million total self pay subscribers. While we continue to work to stabilize in the use of Pandora engagement and Pandora premium.
<unk> is the highest among all streaming services, we still feel confident in Pandora as potential advertising growth and the benefits of larger scale to Sirius XM gross profit in the Pandora segment grew 30% and gross margin improved three points compared to the prior year period.
This is mostly attributed to the growth in advertising revenue highlighting the excellent operating leverage in the business.
The capital allocation, we continued significant capital returns during the first quarter with dividends of $61 million in common stock repurchases of $516 million debt to adjusted EBITDA was three four times at the end of the first quarter and we maintained significant liquidity to meet our operating and investment needs. Lastly, we are.
Reiterating and feel confident in all of our subscriber and financial guidance of the year, including Sirius XM self pay net subscriber additions of approximately 800000 total revenue of approximately $8 35 billion adjusted EBITDA of approximately $2 $5 75 billion and free cash flow of approximately $1 6 billion.
So with that I will open it up to Q&A.
I would like to remind everyone in order to ask a question. Please press star one on your telephone keypad.
If at any time you'd like to be removed from the queue. Please press star two.
We will pause for just a moment to compile the Q&A roster.
Your first question.
On the from Vijay Jayant of Evercore ISI.
Yes.
Hi, It's James Ratcliffe for Vijay of two if I could first of all of them. The Pandora side of very strong monetization of the quarter Youre continuing to see subscribers or listeners of road are there plans or can you talk about efforts too.
We're growing that listener base or at least the stabilize it and.
And secondly on the satellite radio side.
The low sac in the quarter is that.
Because I'd have to do with the new agreements that you mentioned or is there something else going on there. Thanks.
Sure. Thanks James.
First on the Pandora side we're.
We're very pleased that we continue to have the largest free digital audio platform in the U S. Yeah, we recognize that.
Of that the losses.
The listeners are.
Not where we want a day and we're extremely focused on the App, we have a number of initiatives in place to deliver more and better content more relevant recommendations and improving the Pandora digital experience of the apps.
But what you pointed out is key for us going forward that our monetization has been really strong at Pandora and we continue to deliver strong RPM the.
Team has.
The strong innovative AD products, there and we've got you know we launched an interesting partnership with T. Mobile we've had a really good relationship with them over the years, we have a very unique pandora offering in place with T mobile and we look forward to doing more of collaborations with the T mobile of plan.
In the future and other big brands that we should be able to talk about them.
And then I guess on the back of your question was about.
The Saks.
Alright, James the second question.
Alright, yes.
Yes, so I mean, I think Oh, sorry.
Yes.
Hi, sorry, just what why it step down so much and if that had anything to do with the new OEM agreements that were mentioned.
Yeah, I think yeah, two things I do we continue to work with our OEM partners too.
Strengthen our relationships you saw our announcement this month with Jaguar land Rover, yet. Another example of an <unk>.
<unk> partner, increasing penetration, we're launching standard across their models on model year 'twenty, one vehicles and we've extended the agreement through 2020. So yes, we continue to work with the Oems and those agreements as we renegotiate.
The terms.
Across.
Our subsidies hour trial structures and our revenue share may change, but we are.
Constantly optimizing them in favor of building penetration, which is what's going to drive longer term growth for us in the future.
So the the.
The tax expense in the quarter is partially a function of those new agreements with various automakers, but it's also really driven by.
Supply constraints, we've seen.
With silicon.
And you know this is really across the board, it's an industry phenomenon that I I know you've seen widely reported.
Where automakers are continuing to manage the supply of silicon across their vehicle lines and so we did see lower installs than we would've expected in the quarter, but luckily consumer demand on the automotive side is very strong and we had the biggest quarter, we've ever had on trial starts which bodes well.
Of our conversions in the future.
Great. Thank you.
Okay.
Our next question comes from Sebastian <unk> of J P. Morgan.
Hi, Thanks for taking the question.
I'm just wondering if you can give us an update on your podcast strategy obviously.
A lot of headlines from Apple and Spotify recently about moving more towards the subscription based service.
Just wanted to hear your views on if this is where the market is going and perhaps how serious thinking about it longer term.
Sure I'll start and Scott and you can feel free to add on.
Our focus is on delivering the best experiences for content creators and we can help them monetize more broadly because we have the best solutions in terms of AD Tech and our AD sales team you saw with our acquisitions last year of <unk>.
And simple cash that we added to these capabilities and we believe we're really well positioned to broadly distribute content from podcast creators and publishers across platforms, whether it's our own platforms or off platform and we believe and that's what we see.
<unk> creators.
Really looking for of course, the announcement this week from Apple and Spotify.
We are really well positioned to offer subscription products do we have subscription products across our brands today, including a petitioner, where some time we've had for some time, we've had of premium podcast subscription in market in which James provide capabilities for listeners to listen to podcast.
AD free to get early Windows, and you have premium exclusive content. So we can be nimble, yes, that's really where the market heads and consumers want to go we certainly have the opportunity to monetize and help content creators monetize through subscription I'm not opt.
Optimistic that consumers are going to want to have a lot of micro audio subscription, but again, if that's the path that we see evolving.
We have the opportunity of course, you got as well Scott.
Scott.
Sure just one thing on that so the biggest thing right now for podcast I think just having high quality production and enough.
Hey level content in the podcast sorry marketplace. So we offer the production skills, the curation skills to get into a subscription model on a moment's notice. We're obviously living it every day, but if you look at of podcasts in January of crime Junkie.
In the top 10 of Stitcher, Pandora and Sirius XM.
On people listening to podcasts, if you talk to any podcast creator they want awareness in marketing and we'd like to get into position where we're comfortable.
Marketing and promoting podcasts so the awareness is there.
<unk> level and at that point, we make decisions on subscriptions micro subscription that will be easy we're about trying to figure out where the best fighting point is that as this evolves.
That's helpful and then perhaps the can follow up on the <unk>.
Just your comments around the silicon sort shortage.
If indeed the supply chain is can the screens and Oems are unable to kind of refill that inventory.
The refill of the inventory would that be of positive should we think about that of the upside benefit to EBITDA.
For the full year.
<unk> build.
The inventory builds will not necessarily come through in the numbers just any color there would be great. Thank you so much.
Sure.
Certainly installs are lighter going forward or continue to be lighter going forward than we would have lower sac expense.
For the business, we clearly are hopeful that.
The all the Ams will be able to meet consumer demand. There has just been inc.
Credible and on the <unk>.
On the consumer side for both new and used cars and you thought Saar of 16 eight per share.
$2 8 million in the first quarter and we as we said March was at $17 7 million.
That strength continues now the <unk>.
Inventory levels are historically low at 39 days and there's only so much inventory out there to support the consumer demand, but strong auto sales is good for our business and we're hopeful again that the.
We'll be able to deliver to support that demand and that there'll be strong used car inventories as well to support the demand of expense the best thing for our business on the topline.
Thanks again.
As a reminder, ladies and gentlemen, please press star one to ask a question you may need to ensure that the mute function on your telephone is switched off to allow your signal to reach our equipment.
Great. Operator next question comes from.
Comes from Matthew Harrigan of benchmark.
Well. Thank you you've got arguably certainly the dose.
Portfolio audio wise on sports in North America, we've seen a lot of the day out since the draft James I know.
They are probably distribute.
The download the tour content.
Through the review, but can you talk about how.
Online sports betting and the halo around the asset.
The sports.
<unk> is down but you still have a lot some benefits there or is there any prospect for direct deals.
You have action network and some other.
Assets that are Super high profile. Thank you.
Scott you want to take that.
Sure.
Sports betting has always been of direct corollary to live sports.
So when you look at where we'll go in the audio.
Right.
Live sports betting and other things.
<unk> had a fantasy sports program for a long time, we have as you saw of recently with baseball tied up digital rights. So the key to sports betting.
I believe the affiliation and the relationship with the live sports events and certain things anyone can do and others do you need the lives.
And the authorized rights with the lease digitally and that's the position we're in right now.
We're going to continue we've tried things with.
This and other things.
We're looking to create what will be the more key.
In that area. The issue is it's easy when you see the NFL or baseball and all of that is one of those.
We're watching and analyzing all of Thats out there and win one or two emerge will be there.
And you'll hear more about that soon.
Great. Thank you.
The next question comes from David Joyce of price.
Right.
Thank you.
I was wondering on the cadence of continued pay promotional subscriber losses granted you said that.
You'll be able to pass through maybe losing $1 $5 million. This year, but is there a past of that going to zero at some point or is that always going to be part of your.
The range of the OEM relationships.
And then secondly related to the OEM payments impacts that were lower in the first quarter, how much of that was timing and how much was related to the change in these contracts.
Okay.
John you want to get those.
Yes, maybe Jennifer I'll take the second one first David Yes.
As you saw we the cash flow in the first quarter to 11 was in line with our expectations.
Had some working capital timing movements, some incremental cash interest as I talked about so.
Nothing really unusual there on.
On the paid promotional.
Sub losses, I think they'll continue to be.
I think I tried to at least size of that for you for 2021.
And they'll continue to be I think part of our OEM deals.
As Jennifer talked about we made some amendments we look at these deals holistically.
I think paid promotional is still an important part of our relationships with the Oems and the consumer so.
I don't expect it to go to be eliminated.
Don't know if there's anything you want to add to that Jennifer.
Yeah, I think it's just one component right.
The trial structure.
The overall deal economics, and again, we're focused on building penetration.
And as are the Oems they've been very supportive of having the product in as many vehicles as possible and.
Every OEM is different in terms of what's important to them in terms of the economic structure. So.
The real key for us is driving self pay subscribers as thats, the biggest indicator of customer demand.
Okay, Thanks, and on the royalty decision the delayed another couple of months what is embedded in your expectations for this year, what should we be looking for.
Okay.
Sure David.
I'll reiterate what I think we talked about at the year end call. We've taken a pragmatic deal I think that what we pay what we have the.
Lobbied for in the hearing and what they're asking for is all public information I think the we've taken a pragmatic view, it's embedded in our guidance and frankly, it's embedded in our first quarter results. So as you know, we'll know June 15th and we can certainly update everyone. In the next time, we're together.
Alright, thank you.
Our next question comes from Rob.
Robert Routh of FBR.
Yes, good morning, Thanks, and great quarter.
First question of a couple of if you don't mind first could you just.
Talk about you guys talking to AT&T about acquiring some of the spectrum that they have because it was complementary to some spectrum that you have and if that was true I'm, just curious as to whether or not that simple youre still interested in and if so what's the status of that process is or isn't if youre comfortable talking about it.
Sure.
Sure. So we've been working closely with AT&T on the FCC.
On the adjacent spectrum and.
Yes.
We're looking at various opportunities to use that in conjunction with government agencies not for commercial purposes, but it's important to us to protect that guard band.
The <unk>.
Next you are satellite.
Vectren and yes, we're making progress in terms of.
The steps we need to go through to put a test market and we feel confident that we'll be able to execute on that.
Okay, great and the related spectrum question.
Given the you're migrating from the XM Sirius platform to one and youre going to of a bunch of spectrum free.
The under your control.
Work.
Thoughts do you have as far as how you could possibly monetize zax I assume the FCC I'll, let you keep the licenses on the other wooden.
Is there as you have the autonomous car companies or anyone approached you all and inquired about somehow being able to use some of that spec spectrum. When you free it up are you planning to use it all for incremental products for one of your other platforms.
We're still looking at a number of options there I mean, the the decision around low band satellites will likely come in the next 18 months, but today, we still have.
The number of subscribers on the low band.
And we want to continue to maintain and support that business, but over time, we have looked at and will continue to look at opportunities to work with other companies.
On ideas, whether its data services or video or other implementation.
But of course, there's always the opportunity to use that very efficient broadcast spectrum to enhance our audio offering and that could be true.
The more opportunities too.
To build out a different business models, including free.
Great.
One last one if I may.
You mentioned on the previous call about the omni platform deal that you had signed with Kevin Hart, both on Sirius and Pandora and podcast and kind of doing that and.
When it comes to the major talent I know the many of them are reluctant to be on anything other than the biggest platform you have but I'm just curious as to as to how your success has been in attracting other major challenge or even.
And of a list of beer she list talent to.
To some type of the Sirius XM on the platform.
Presence.
Similar to what the <unk>.
The EBIT highlighted has its Kevin.
Scott Yes.
Yes.
Thank you for the question.
Not only.
Kevin was sort of the prototype for it.
We have others that you'll be hearing about shortly that are multi platform deals I would go the other way.
All of our accounts now.
That we discuss with our current talent Andy Cohen is launching of music channel.
In addition to the channel, but it will have play list.
On Pandora as part yes.
We're largely.
Sort of only talking about what someone's audio content.
<unk> and then figuring out what they would like.
And what would work for us on all three platforms where relevant.
This is almost now I'd say our standard procedure, we don't have too many people that are just coming in and saying.
I would like to be on one platform or the other.
I think youll see with.
Youtube Drake and others, you'll see some migration into platforms and things of this.
What we like most about our three pronged attack. It gives customization we have people that do the schedules like Kevin may want to podcasts for a while others want to do live radio due to topical events in the current stories in the news others feel music as part of their life, but they don't have the way of expressing the platelets.
So this will be the standard operating procedure going forward.
Not the exception.
The question I guess in the chassis.
It sounds like yes, it's actually working its actually attracting a lot of talent to Sirius in your various platforms. Because you do have all of those were some of the other players the only have one who is the.
Safe to say exactly.
More than safe to say in the last point on that as awareness is the key point Eddie content creator no matter, what you want whether it's the live sporting event or anything they wanted to know and of our three platforms Oh Wow. What I think is the ultimate version of cross promotion on any piece of content out there. So yes they will.
Really excited when they come in the chat about it right now.
That's what I expected and the flexibility that others can offer great. Thank you very much I really appreciate it.
Thanks, so much.
Okay.
The next and final question comes from Jim Goss of Barrington Research.
Thanks, very much a couple of things one involving the.
Your AD sales process I Wonder if you could talk about the AD sales integration of its youre, a variety of options, especially between Pandora and Sirius.
And whether the.
App usage and availability has broadened out of LC significantly and then separately.
On the 360 rollout process.
And route to three of <unk> being at your default version as you mentioned is there any targeted process too.
The price or demographics served or anything else that you are trying to do to get the 360 all of service rolled out to the specific categories sooner than others.
Yeah.
Thanks for the question so the on the advertising side.
The enable too.
I think capitalize on our strength on the sales team side under John <unk>, We brought all of the teams together.
Soon be launching under.
A new umbrella of Sirius XM media.
Which brings together all of the capabilities that we have on the sales side across the teams.
To offer advertisers really efficient opportunities to buy across scaled audience is we reached 150 million listeners.
And we just offer.
A great suite of opportunities across multiple formats and platforms on our owned and operating platform and off platform.
And we have all of the Tech solutions.
To support that as well.
Across as with an including simple cash that we bought last year to provide enhanced podcast capabilities on the distribution hosting analytics side as well. So we're really well positioned from an advertising side as it relates to the inventory on our owned and operated platforms clearly Pandora is the largest.
And we continue to monetize really strongly there.
But we are growing our AD revenue on stitcher and off platform and we have a nice business on the Sirius XM broadcast side as well the Sirius XM. The digital side continues to build and we hope battle of contribute more in the future on the advertising side.
For the 360 L.
We are very focused on broadly distributing this right now so we haven't focused on specific demographics of our cohorts necessarily the objective is to.
<unk> rolled that out and we expect to be in about 25% of our installed this year.
In terms of of what's new and coming to the market and we've talked about the fact that we of about 2 million vehicles in market that are capable of today. So we have great progress its moving very quickly and the bill that most of our Oems are now, making it plan of record and moving.
Moving forward because of all of the data we're going to get from 360, all of the vehicles, which is really new to us we will be out of the customized I believe our pricing and packaging, even more to support demand for of different.
Segments, but today, we're just focused on getting the awareness up for the features that are there because when users take.
Take advantage of those features there is a significant increase and.
And value in their attributed ease of use.
And we're looking for improvements obviously related to that of profit conversion and retention as well.
Okay. Thanks very much.
Thanks, Jim and thanks, everybody for participating in today's call that concludes the call we'll speak to you soon take care.
Okay.
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