People are starting to think interest in Pandora, the music streaming service owned by Sirius XM, might be slipping because of flat user numbers, tough rivals, and low payouts to artists. Let’s break down the main reasons behind this view.
First, Pandora’s growth has stalled while the rest of streaming booms. Sirius XM reports slow growth or even slight drops in Pandora’s monthly active users, with self-pay subscribers for the company down 303,000 in Q1 2025 and another 68,000 in Q2. The company expects 2025 revenue of $8.5 billion, missing what analysts hoped forhttps://markets.financialcontent.com/wral/article/predictstreet-2025-12-12-sirius-xm-holdings-inc-siri-navigating-a-shifting-audio-landscape. Global streaming revenue grew 7.3 percent in 2024 to $20.4 billion, but Pandora isn’t keeping pacehttps://www.statista.com/statistics/537066/growth-music-streaming-revenue/.
Competition is fierce from newer apps like Spotify, which has 31.7 percent of global subscribers and 640 million active users. These services offer huge libraries, on-demand songs, and lower costs, making Pandora’s radio-style playlists feel outdated. Sirius XM notes intense pressure from streaming that provides more conveniencehttps://markets.financialcontent.com/wral/article/predictstreet-2025-12-12-sirius-xm-holdings-inc-siri-navigating-a-shifting-audio-landscape. Critics call Pandora a relic from the 2000s, with everyone now doing similar mood-based playlistshttps://www.bloodinthemachine.com/p/a-complete-guide-to-quitting-spotify.
Pandora also pays artists poorly, at about $0.0027 per stream, matching the lowest rates and turning off musicians and fans. This matches complaints about Spotify and others driving down artist wageshttps://www.bloodinthemachine.com/p/a-complete-guide-to-quitting-spotify. Add in Sirius XM’s high debt of $10 billion, which limits new ideas, and the picture looks shakyhttps://markets.financialcontent.com/wral/article/predictstreet-2025-12-12-sirius-xm-holdings-inc-siri-navigating-a-shifting-audio-landscape.
Satellite radio ties make Pandora seem like old tech next to internet streaming giants. Time spent on radio is falling, especially among young listeners who prefer free or cheap appshttps://www.broadcastlawblog.com/2025/11/articles/december-17-comment-date-set-in-2022-quadrennial-review-looking-at-local-ownership-rules-what-is-at-stake-particularly-for-radio/.
Sources
https://markets.financialcontent.com/wral/article/predictstreet-2025-12-12-sirius-xm-holdings-inc-siri-navigating-a-shifting-audio-landscape
https://company.rtl.com/.galleries/downloads/2025.11-RTL-Group-Quarterly-Statement-Q1-3-2025.pdf
https://www.bloodinthemachine.com/p/a-complete-guide-to-quitting-spotify
https://www.statista.com/statistics/537066/growth-music-streaming-revenue/
https://www.broadcastlawblog.com/2025/11/articles/december-17-comment-date-set-in-2022-quadrennial-review-looking-at-local-ownership-rules-what-is-at-stake-particularly-for-radio/
