As growth in its traditional in-car subscription base slows, SiriusXM is leaning more heavily on new pricing and packaging strategies designed to deepen engagement with existing listeners — and early signs suggest those efforts are gaining traction.

CEO Jennifer Witz acknowledged the company expects slightly weaker subscriber totals this year even as revenue and free cash flow remain stable. Against that backdrop, Witz told a Morgan Stanley investor conference this month that newer subscription offerings — particularly the Companion plan — are an example of how SiriusXM is trying to extract more value from its existing audience.

“Companion’s been a big success for us,” Witz said. “We continue to see some solid momentum there.”

The Companion plan allows certain full-price SiriusXM subscribers to give another member of their household access to stream SiriusXM on its app, complete with their own library and personalized recommendations. Witz said the initiative is built on the company’s broader strategy of increasing engagement across devices and locations rather than relying solely on new vehicle conversions. It also means tying subscriptions more to the person, than the car.

The feature launched in December and is currently positioned primarily as a loyalty benefit for existing customers rather than as a primary acquisition tool. Early indicators suggest the plan is resonating.

“We’ve seen nice take rates,” Witz said. “It’s early, but we’re starting to see improved retention as well.” SiriusXM says self-pay churn fell to 1.5% in 2025, one of its lowest levels ever despite a price increase.

While the company has not yet marketed Companion aggressively to attract new subscribers, Witz suggested it could eventually evolve into a broader household or family plan offering.

“Right now, it’s an added value to current subscribers,” she said. “There are probably opportunities going forward to market that as a family plan as well.”

Companion is part of a broader effort by SiriusXM to expand its pricing and packaging options as it works to adapt a historically vehicle-centric business model to a more flexible, multi-device listening environment. Witz said the company has already introduced several new subscription tiers and may continue experimenting with additional options. “We’ve had a lot of success with what we’ve introduced over the last couple of years,” she said.

Last month, SiriusXM reported it lost 301,000 subscribers last year, despite adding 110,000 during the fourth quarter. The year ended with about 33 million total subscribers, roughly where it started 2025. But it expects the drop will decline in 2026.

The subscription focus reflects a growing emphasis on retention as SiriusXM navigates slower growth in its traditional in-car subscriber funnel. But the car remains the center of its business strategy, even as the company adapts to changing listening habits.

“The foundation of the business has always been the in-car subscription business,” Witz said, noting the satellite radio service embedded in vehicles still drives the bulk of its financial performance.

The number of vehicles equipped with SiriusXM receivers totals 180 million. But the growth cycle is tied to auto production and sales volumes rather than rapid digital adoption. By putting more focus on subscriptions, the company looks to put more of its future in its own control.

SiriusXM is also investing in technology designed to modernize the in-vehicle experience. The company has also been gradually integrating its streaming service into newer connected vehicles, including software-based systems in electric vehicles and connected dashboards. That approach allows SiriusXM to maintain its presence even in cars that rely more heavily on internet-based infotainment platforms.

“It’s all about improving engagement and delivering more value to our core in-car audiences.” Witz said.