SiriusXM, the satellite radio company, has announced that it will discontinue its Stitcher podcast app and subscription service, signaling a big shift in the podcasting industry. The decision, announced on Tuesday, is part of a larger push to streamline its content offerings and drive more users to its own app. The change is expected to take effect on August 29, 2023.
SiriusXM executives Joe Inzerillo, John Trimble, and Scott Greenstein explained the decision in an internal memo. “The scale and reach of our widely distributed podcasts have been and continues to be a critical accelerant for our advertising sales business,” they said, “while incorporating podcasts more holistically into our flagship SiriusXM subscription service will help to drive further growth.”
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Reason Behind Stitcher Shutdown
Podcasts that were previously available on Stitcher will continue to be available on other platforms as well as the SiriusXM app. This move is interpreted as SiriusXM’s endeavor to streamline its services and deliver a more cohesive user experience.
Stitcher, on the other hand, will continue to produce podcasts through its Stitcher Studios and Earwolf networks. According to a person acquainted with the situation, no layoffs are planned as a result of this decision. This implies that, while the Stitcher app and subscription service will be phased out, the production part of the business will continue to operate.
Stitcher’s subscription service costs $4.99 a month. According to Comscore data, its app and website received 900,000 unique visitors. This signals a sizable user base that SiriusXM will most likely attempt to migrate to its own platform.
The decision to shut down Stitcher comes after SiriusXM paid up to $325 million for the podcast platform in 2020. This was one of the largest podcast acquisitions at the time, indicating the industry’s rapid expansion and the increasing value of podcast content.
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In recent years, the podcasting industry has seen an increase in multimillion-dollar collaborations with influencers, newsmakers, and independent studios. To benefit from this trend, businesses have upped their podcasting efforts. SiriusXM’s acquisition of Stitcher was part of a bigger industry trend.
Stitcher’s demise, on the other hand, shows a shift in SiriusXM’s strategy. Rather than operating multiple platforms, it appears that the company is concentrating on blending podcast content into its flagship satellite radio service. This has the potential to enhance the user experience while also bolstering the SiriusXM brand.
The move also underlines the industry’s difficulties and uncertainties. While the sector has experienced rapid development and high-profile transactions, it is also extremely competitive, with several platforms fighting for listeners. The decision to close Stitcher could be regarded as a sign of industry consolidation.
