Sirius XM Holdings Stock

Sirius XM Holdings Inc. operates as an audio entertainment company in North America with a portfolio of audio businesses, including the company’s flagship subscription entertainment service, Sirius XM (Sirius XM Radio Inc.); the ad-supported and premium music streaming services of Pandora (Pandora Media, LLC); a podcast network; an advertising sales group, SiriusXM Media; and a suite of advertising technology solutions.

The company operates two complementary audio entertainment businesses – its Sirius XM business and its Pandora and Off-platform business. The company reaches a combined monthly audience of approximately 150 million listeners.

The company continues to expand the range of choices for its listeners – both in terms of compelling content and the array of ways in which it can be consumed. There are approximately 160 million vehicles in operation with Sirius XM radios, and the proliferation of smart speakers and other connected devices, including the company’s webplayer and the SiriusXM App, has increased the range of options consumers have for engaging with and consuming its content.

In 2023, the company began an extensive project to update its digital infrastructure. That project involves the implementation of new systems and products that extend from the company’s consumer-facing SiriusXM App to the systems underlying its billing, identity, commerce and customer management functions.

The company’s new SiriusXM App became available to consumers beginning on December 14, 2023. The new SiriusXM App includes a sleek new design that is easy to use and includes modernized client applications. The new SiriusXM App contains, among other things, improvements to the company’s search and discovery functions, and improves the talk and sports programming and podcast experience for listeners. In addition, the SiriusXM App is built on the company’s new digital infrastructure, including its new commerce platform, identity system, billing engine and improvements to its marketing technology capabilities.

Sirius XM

The company’s Sirius XM business features music, sports, entertainment, comedy, talk, news, traffic and weather channels and other content, as well as podcasts and infotainment services, in the United States on a subscription fee basis. Sirius XM’s premier content bundles include live, curated and certain exclusive and on demand programming. The Sirius XM service is distributed through the company’s two proprietary satellite radio systems and streamed via applications for mobile devices, home devices and other consumer electronic equipment. Radios are primarily distributed through automakers, retailers and the company’s website. The company’s Sirius XM service is also available through its user interface, which it calls 360L, that combines its satellite and streaming services into a single, cohesive in-vehicle entertainment experience.

The primary source of revenue from the company’s Sirius XM business is subscription fees, with most of its customers subscribing to monthly, quarterly, semi-annual or annual plans. The company also derives revenue from advertising on select non-music channels, direct sales of its radios and accessories, and other ancillary services. As of December 31, 2023, the company’s Sirius XM business had approximately 33.9 million subscribers.

In addition to its audio entertainment businesses, the company provides connected vehicle services to several automakers. These services are designed to enhance the safety, security and driving experience of consumers. The company also offers a suite of data services that includes graphical weather, fuel prices, sports schedules and scores and movie listings, a traffic information service that includes information as to road closings, traffic flow and incident data to consumers with compatible in-vehicle navigation systems, and real-time weather services in vehicles, boats and planes.

Sirius XM also holds a 70% equity interest and 33% voting interest in Sirius XM Canada Holdings Inc. (Sirius XM Canada).

Pandora and Off-platform

The company’s Pandora service operates a music, comedy and podcast streaming platform, offering a personalized experience for each listener wherever and whenever they want to listen, whether through mobile devices, car speakers or connected devices. Pandora enables listeners to create personalized stations and playlists, discover new content, hear artist- and expert-curated playlists and podcasts, as well as search and play songs and albums on-demand. Pandora is available as an ad-supported radio service, a radio subscription service (Pandora Plus) and an on-demand subscription service (Pandora Premium). As of December 31, 2023, Pandora had approximately 6.0 million subscribers.

The majority of revenue from the company’s Pandora service is generated from advertising on its Pandora ad-supported radio service. The company also derives subscription revenue from its Pandora Plus and Pandora Premium subscribers.

The company’s Pandora and Off-platform business also sells advertising on other audio platforms and in widely distributed podcasts, which it considers to be off-platform services.

Podcasting

In 2023, an estimated 120 million Americans listened to a podcast at least monthly. In 2020, Sirius XM acquired Stitcher, a leader in the distribution of podcasts. The company has agreements to serve as the ad sales representative for many podcasts, including the leading podcast networks, such as Audiochuck, Crooked Media and NBC News.

Sirius XM subscribers can also listen to their favorite podcasts with streaming access via the SiriusXM App and online. Covering topics, such as true crime, news, politics, music, comedy, sports and entertainment, Sirius XM's curated selection of podcasts comes from SiriusXM content edited into podcast format, as well as from third parties.

The company also offers a portal, Simplecast Creator Connect, for podcasters to share their podcasts with new audiences and gather data about their shows. Podcasts submitted through this portal are offered to subscribers of Pandora’s ad-supported service as an additional benefit.

Through its Simplecast business, the company also offers a podcast management and analytics platform, allowing it to offer podcasters a solution for management, hosting, analytics and advertising sales.

SiriusXM Media

SiriusXM Media is an advertising sales group spanning the company’s SiriusXM and Pandora audio entertainment services. SiriusXM Media also sells advertising on audio platforms and in podcasts unaffiliated with the company and serves as the exclusive advertising representative for other third party platforms and podcasters, including such major entities as SoundCloud and NBCUniversal. SiriusXM Media has a reach of more than 150 million monthly listeners, and gives brands, creators, and publishers access to the largest digital audio advertising platform in North America.

SiriusXM Media offers advertisers the ability to execute campaigns in the United States across various platforms, including Pandora and SoundCloud. In addition, through AdsWizz Inc., the company provides a comprehensive digital audio and programmatic advertising technology platform, which connects audio publishers and advertisers with a variety of ad insertion, campaign trafficking, yield optimization, programmatic buying, marketplace and monetization solutions.

Sirius XM Business

Programming

The company offers a dynamic programming lineup of commercial-free music plus sports, entertainment, comedy, talk, and news, including an extensive selection of music genres, ranging from rock, pop and hip-hop to country, dance, jazz, Latin and classical; live play-by-play sports from major leagues and colleges; a multitude of talk, entertainment and comedy channels for a variety of audiences; a wide range of national, international and financial news; and exclusive limited run channels.

The company’s broad and diverse programming, including its lineup of exclusive content, is a significant differentiator from terrestrial radio and other audio entertainment providers. The company makes changes to its programming lineup from time to time as it strives to attract new subscribers and offer content which appeals to a broad range of audiences and to its existing subscribers. The channel lineups for the company’s services are available at siriusxm.com.

The company continues to expand its offerings, including through programming that represents diverse viewpoints, historically underserved audiences and original content of a type not typically available to consumers.

Sirius XM Streaming Service

The company’s streaming service includes a variety of music and non-music channels, including channels and content that are not available on its satellite radio service, and podcasts. Consumers can access the company’s streaming service on iOS and Android mobile devices, web browsers, and other internet connected devices.

The company’s streaming service features the broad range of music, sports, talk, news and entertainment channels available on satellite radio; access to over 200 additional music channels; on-demand new and archive episodes of SiriusXM shows and specials, and video content, including video from The Howard Stern Show, encompassing in-studio performances, interviews and behind-the-scenes moments with artists, personalities and newsmakers.

The company’s Sirius XM service also includes a library of podcasts, some of which are exclusive to its service, and other on demand content.

The company’s streaming service is included as part of the vast majority of its satellite radio subscription plans, including the Music Showcase, Music and Entertainment, and Platinum plans. The company also offers its streaming service in several standalone packages, which do not include a satellite radio subscription. These packages, which include the Streaming Music Showcase, Streaming Music and Entertainment, Streaming Platinum, and All Access (App only) plans are available to consumers at various prices and include a variety of content. The company’s Artist Stations feature, which allows subscribers to create their own customized ad-free music stations within the SiriusXM App and on capable 360L in-vehicle radios, is offered to consumers as part of its All Music Plan, All Access (App only), Streaming Platinum and Platinum plans.

The company has agreements with makers of electric vehicles, such as Lucid and Rivian, to include the SiriusXM experience as part of their vehicles. The company has entered into agreements with third parties designed to increase the distribution and ease of use of its streaming service, including through connected devices. In addition, the company has arrangements with various services and consumer electronics manufacturers to include the Sirius XM streaming functionality with their service and devices.

360L

The company’s advanced automotive platform, which it calls 360L, combines its satellite and streaming services into a single, cohesive in-vehicle entertainment experience. The company has agreements with many automakers to deploy its 360L interface in a variety of vehicles. In 2023, the company’s 360L platform was included in approximately 129 vehicle models manufactured for sale in the United States. The company expects that 360L will be included in a majority of vehicles that include Sirius XM functionality in the future.

360L allows the company to take advantage of advanced in-dash infotainment systems. 360L is intended to leverage the ubiquitous signal coverage and low delivery costs of its satellite infrastructure with the two-way communication capability of a wireless streaming service to provide consumers seamless access to its content, including its live channels, on demand service, podcasts and personalized music services. The wireless streaming connection included in 360L enables enhanced search and recommendations functions, making discovery of the company’s content in the vehicle easier. 360L also provides the company data on how its subscribers use its service.

Distribution of Radios

New Vehicles

The company distributes satellite radios through the sale and lease of new vehicles. The company has agreements with major automakers to offer satellite radios in their vehicles. Satellite radios are available as a factory-installed feature in substantially all vehicle makes sold in the United States. Most automakers include a trial subscription to the company’s service in the sale or lease of their new vehicles.

Previously Owned Vehicles

The company acquires subscribers through the sale and lease of previously owned vehicles with factory-installed satellite radios. The company has entered into agreements with many automakers to include a subscription to its service in the sale or lease of vehicles which include satellite radios sold through their certified pre-owned programs. The company also works directly with franchise and independent dealers on programs for non-certified used vehicles.

The company has developed systems and methods to identify purchasers and lessees of previously owned vehicles which include satellite radios and have established marketing plans to promote its services to these potential subscribers.

Retail

The company sells satellite radios directly to consumers through its website. Satellite radios are also marketed and distributed through national, regional and online retailers, such as Amazon.com.

Satellite Radio Systems

The company’s satellite radio systems are designed to provide clear reception in most areas of the continental United States despite variations in terrain, buildings and other obstructions. The company continually monitors its infrastructure and regularly evaluate improvements in technology.

The company’s satellite radio systems have three principal components, such as satellites, terrestrial repeaters and other satellite facilities; studios; and radios.

Satellites, Terrestrial Repeaters and Other Satellite Facilities

Satellites: The company provides its service through a fleet of orbiting geostationary satellites. Two of these satellites, FM-5 and FM-6, transmit its service on frequencies originally licensed by the Federal Communications Commission (the FCC) to Sirius, and two of these satellites, XM-5 and SXM-8, transmit the company’s service on frequencies originally licensed by the FCC to XM. The company’s XM-3 satellite serves as a spare for the XM system.

On December 13, 2020, the company’s SXM-7 satellite was successfully launched and in-orbit testing of SXM-7 began on January 4, 2021. During in-orbit testing of SXM-7, events occurred which caused failures of certain SXM-7 payload units. The evaluation of SXM-7 concluded that the satellite would not function as intended. SXM-7 remains in-orbit at its assigned orbital location, but is not being used to provide satellite radio service.

The company has entered into agreements for the design, construction and launch of four additional satellites, SXM-9, SXM-10, SXM-11 and SXM-12. Construction of these satellites is underway, and those satellites are expected to be launched into geostationary orbits in 2024, 2025, 2026 and 2027, respectively.

Satellite Insurance: The company has procured insurance for SXM-9, SXM-10, SXM-11 and SXM-12 to cover the risks associated with each satellite's launch and first year of in-orbit operation.

Terrestrial Repeaters: In some areas with high concentrations of tall buildings, such as urban centers, signals from the company’s satellites may be blocked and reception of satellite signals can be adversely affected. In other areas with a high density of next generation wireless systems the company’s service may experience interference. In many of these areas, the company has deployed terrestrial repeaters to supplement and enhance its signal coverage and, in other areas, the company may deploy additional repeaters to mitigate interference. The company operates over 1,000 terrestrial repeaters across the United States as part of its systems.

Other Satellite Facilities: The company controls and communicates with its satellites from facilities in North America. The company’s satellites are monitored, tracked and controlled by a third party satellite operator.

Studios

The company’s programming originates from studios in New York City, Los Angeles, Miami, Nashville and Washington D.C. and, to a lesser extent, from smaller studios in a variety of venues across the country. The company provides equipment to artists and hosts to enable remote creation and transmission of programming.

Radios

The company has authorized manufacturers and distributors to produce and distribute radios, and has licensed its technology to various electronics manufacturers to develop, manufacture and distribute radios under certain brands.

Connected Vehicle Services

The company provides connected vehicle services to several automakers. The company’s connected vehicle services are designed to enhance the safety, security and driving experience for vehicle operators while providing marketing and operational benefits to automakers and their dealers. The company offers a portfolio of location-based services through two-way wireless connectivity, including safety, security, convenience, maintenance and data services, remote vehicle diagnostics, and stolen or parked vehicle locator services. Subscribers to the company’s connected vehicle services are not included in its subscriber count or subscriber-based operating metrics.

Other Services

Commercial Accounts: The company’s programming is available for commercial establishments. The company’s wholly owned subsidiary, Cloud Cover Media, Inc. (Cloud Cover), offers a music programming service for commercial establishments. Commercial subscription accounts are also available through Pandora for Business and SiriusXM for Business, each of which offers a licensed, commercial-free music service for offices, restaurants and other business establishments.

Satellite Television Service: Certain of the company’s music channels are offered as part of select programming packages on the DISH Network satellite television service.

Travel Link: The company offers Travel Link, a suite of data services that includes graphical weather, fuel prices, sports schedules and scores and movie listings.

Real-Time Traffic Services: The company offers services that provide graphic information as to road closings, traffic flow and incident data to consumers with compatible in-vehicle navigation systems.

Real-Time Weather Services: The company offers real-time weather services in vehicles, boats and planes.

Commercial subscribers to the Sirius XM and Pandora programming services are included in the company’s subscriber counts, respectively. Commercial subscribers to the Cloud Cover music programming service are not included in the company’s subscriber counts. Subscribers to the DISH Network satellite television service are not included in the company’s subscriber counts and subscribers to its Travel Link, real-time traffic services and real-time weather services are not included in the company’s subscriber counts, unless the applicable service is purchased by the subscriber separately and not as part of a radio subscription to its service.

Sirius XM Canada

Sirius XM holds a 70% equity interest and 33% voting interest in Sirius XM Canada, with the remainder of Sirius XM Canada's voting and equity interests held by two shareholders.

As of December 31, 2023, Sirius XM Canada had approximately 2.6 million subscribers. Sirius XM Canada’s subscribers are not included in the company’s subscriber count or subscriber-based operating metrics.

Pandora and Off-platform Business

Pandora Media, LLC, which owns and operates the company’s Pandora and Off-Platform business, is a wholly owned subsidiary of Sirius XM.

Streaming Radio and On-Demand Music Services

Pandora offers a personalized audio entertainment platform for each listener. Users are able to create personalized stations and playlists and search and play songs and albums on-demand. The Pandora service utilizes content programming algorithms, data collected from listeners, and attributes of the music to predict user music preferences, play content suited to the tastes of each listener, and introduce each listener to music consistent with the consumer's preferences.

The Pandora service is available on iOS and Android mobile devices, web browsers, and other internet connected devices. The Pandora application is free to download and use. The company’s Pandora service is also available in vehicles in the United States with smartphone connectivity. Certain automakers provide embedded streaming connectivity that supports and makes available the Pandora service in vehicles without the need for smartphone connectivity. In addition, the company’s Pandora service is integrated into consumer electronic, voice-based devices and smart speakers.

The Pandora service is available as an ad-supported radio service, a radio subscription service (Pandora Plus) and an on-demand subscription service (Pandora Premium). Local and national advertisers deliver targeted messages to the company’s Pandora listeners on the ad-supported service.

Ad-Supported Radio Service

Pandora offers an ad-supported radio service which allows listeners to access the company’s catalog of music, comedy, live streams and podcasts through personalized stations. This service is free across all platforms and generates stations specific to each listener. Each listener can personalize their experience by adding selected artists and songs to their stations.

Listeners of the ad-supported service are provided with the option to temporarily access on-demand listening, including certain features of the Pandora Premium service. The company refers to this temporary access as ‘Premium Access’.

Subscription Radio Service (Pandora Plus)

Pandora offers Pandora Plus – an ad-free, subscription version of the radio service that includes options for replaying songs, skipping songs, offline listening, and higher quality audio on supported devices. Content provided to each listener of Pandora Plus is more tailored when the listener interacts with the platform. Premium Access is also available to Pandora Plus listeners.

On-Demand Subscription Service (Pandora Premium)

Pandora offers Pandora Premium – an on-demand subscription service that combines the radio features of Pandora Plus with an on-demand experience. The on-demand experience provides listeners with the ability to search, play and collect songs and albums, download content for offline listening, build playlists, listen to curated playlists and share playlists on social networks. Listeners can also create partial playlists that Pandora can complete based on the listener’s activity. Listeners through mobile devices have access to customized profiles which identify information specific to each listener, such as recent favorites, playlists and thumbs.

Pandora Premium incorporates social networking features, including a centralized stream where listeners can view the music that their social connections are experiencing and provide and receive recommendations for songs, albums and playlists. Pandora Premium also includes a ‘share’ feature where consumers can share their stations, songs, albums, podcasts or playlists through social media, messaging applications and email.

SiriusXM Media

SiriusXM Media is an advertising sales group spanning the company’s Sirius XM and Pandora audio entertainment services. SiriusXM Media also serves as the exclusive advertising representative for other third party platforms and podcasters, including such major entities as SoundCloud and NBCUniversal. SiriusXM Media has a reach of more than 150 million listeners, and gives brands, creators, and publishers access to the largest digital audio advertising platform in North America.

SiriusXM Media is the exclusive advertising sales representative for the company’s Sirius XM and Pandora platforms. In addition to subscription fees, Sirius XM derives revenues from advertising on select non-music channels. Pandora’s primary source of revenue is the sale of audio, display and video advertising for connected device platforms, including computers and mobile devices. The company’s Pandora and Off-platform business maintains a portfolio of proprietary advertising technologies which include order management, advertising serving and timing, native advertising formats, targeting and reporting. Pandora provides advertisers with the ability to target and connect with listeners based on various criteria, including age, gender, geographic location and content preferences.

SiriusXM Podcast Network

The company licenses original podcasts from their creators, and it also provides podcast advertising services that generate revenue from over 450 shows. The company creates and distributes original podcasts licensed from third parties through platforms, such as the iPhone podcast App. The company earns revenue by distributing advertising on certain owned and operated podcasts, as well as those created by third parties, including placement based on an advertiser’s desired target audience and from the sale of advertising on licensed podcasts.

AdsWizz

Through its AdsWizz subsidiary, the company’s Pandora and Off-platform business is a leader in digital audio advertising technology. AdsWizz operates a digital audio advertising market with an end-to-end technology platform, including a digital audio software suite of solutions that connect audio publishers to the advertising community. AdsWizz offers a range of products – from dynamic ad insertion to advanced programmatic platforms to innovative new audio formats. AdsWizz’s advertising technology also includes ad campaign monitoring tools and other audio advertising products, such as audio formats that enable consumers to trigger an action while listening to an ad, as well as other personalization-based technology.

AdsWizz’s technology is employed by Pandora and the company’s Off-platform business in its ad-supported business, as well as by third party customers. AdsWizz’s third party customers include well-known music platforms, podcasts and broadcasting groups worldwide.

Simplecast

Pandora, through its Simplecast business, also offers a podcast management and analytics platform. Simplecast complements AdsWizz’s advertising technology platform, allowing the company to offer podcasters a solution for management, hosting, analytics and advertising sales.

The company also offers a portal, ‘Simplecast Creator Connect’, for podcasters to share their podcasts with new audiences and gather data about their shows. Podcasts submitted through this portal are offered to subscribers of Pandora’s ad-supported service as an additional benefit.

Artificial Intelligence

The company has begun to employ a number of artificial intelligence algorithms and technology that are designed to improve aspects of its operations, including a customer’s experience, and permit it to better understand and use its operating and financial data. The company is aware of the potential risks associated with the use of AI technology, including the risks relating to data security and the laws, rules and regulations governing privacy. The company has implemented systems to monitor for and prevent data access, including security incidents that result from the use of AI. However, AI technology is evolving and, due to its inherent complexity, the company may be exposed to operational and legal risks associated with the use of AI technologies.

Competition

Competition for Subscribers and Listeners

Streaming and On-Demand Competitors

Streaming and on-demand services, including Amazon Prime, Apple Music, Spotify, TikTok and YouTube, compete with the company’s Sirius XM and Pandora services. Major online providers make high fidelity digital streams available at no cost or, in some cases, for less than the cost of a satellite radio subscription. Certain of these services include advanced functionality, such as personalization and customization and allow the user to access large libraries of content. These services, in some instances, are also offered through devices sold by the service providers, including Apple, Google and Amazon. These services compete with the company’s services, at home, in vehicles, and wherever audio entertainment is consumed.

Advanced In-Dash Infotainment Systems

Nearly all automakers have deployed integrated multimedia systems in dashboards, including Apple CarPlay and Android Auto. These systems combine control of audio entertainment from a variety of sources, including AM/FM/HD radio broadcasts, satellite radio, streaming radio, smartphone applications and stored audio, with other advanced applications. Streaming radio and other data are typically connected to the system through an Internet-enabled smartphone or wireless modem installed in the vehicle, and the entire system may be controlled by touchscreen or voice recognition.

Competition for Advertisers

The company’s competition for advertisers includes large scale online advertising platforms, such as Amazon, Facebook and Google; traditional media companies, such as television broadcasters and national print outlets; broadcast radio providers; podcast distributors and networks; and companies in the broadcast radio market.

Government Regulation

Certain of the company’s services are also subject to laws in the United States and abroad pertaining to privacy of user data and other information, including the California Consumer Privacy Act and the European General Data Protection Regulation.

Sirius XM Business

As operators of a privately-owned satellite system, the company is regulated by the FCC under the Communications Act of 1934, principally with respect to the licensing of the company’s satellite systems; preventing interference with or to other users of radio frequencies; and compliance with FCC rules established specifically for the U.S. satellites and satellite radio services. Any assignment or transfer of control of the company’s FCC licenses must be approved by the FCC.

Any assignment or transfer of control of the company’s FCC licenses must be approved by the FCC. The transaction described above under the heading ‘Liberty Media Split-Off Transaction’ involves a transfer of the company’s FCC licenses and must be approved by the FCC. On December 29, 2023 and January 2, 2024, Liberty Media and New Sirius filed applications with the FCC for those approvals. On January 26, 2024, the FCC began the process of releasing the applications for public comment.

The company’s FCC licenses for its FM-5 satellite expires in 2025, its FM-6 satellite license expires in 2030, its XM-3 satellite license expires in 2026, its XM-5 satellite license expires in 2026, and its SXM-8 satellite license expires in 2029.

The FCC has established rules governing terrestrial repeaters and has granted the company’s a license through 2027 to operate its repeater network.

Copyrights to Programming

The company’s Sirius XM and Pandora services use both statutory and direct music licenses as part of their businesses. The company licenses varying rights, such as performance and mechanical rights - for use in its Sirius XM and Pandora services based on the various radio and interactive services they offer.

Musical Compositions: Performance Rights and Mechanical Rights

The holders of performance rights in musical compositions, generally songwriters and music publishers, are represented by performing rights organizations, such as the American Society of Composers, Authors and Publishers (ASCAP), Broadcast Music, Inc. (BMI), SESAC, Inc. (SESAC) and Global Music Rights LLC (GMR). These organizations negotiate fees with copyright users, collect royalties and distribute them to the rights holders.

Sirius XM Service: The company has arrangements with ASCAP, BMI, SESAC, and GMR to license the musical compositions it performs on its satellite radio and streaming services. The company’s Sirius XM business does not require a mechanical license.

Pandora Services: The company has arrangements with ASCAP, BMI, SESAC, GMR and a variety of other copyright owners to license the musical compositions performance rights it uses on its Pandora services. For the company’s Pandora ad-supported radio service, certain copyright holders receive as a performance royalty their usage-based and ownership-based share of a royalty pool equal to 21.5% of the content acquisition costs that it pays for sound recordings on its ad-supported service and others receive a fixed fee.

For its Pandora subscription services, copyright holders receive payments for these rights at the rates determined in accordance with the statutory license set forth in Section 115 of the United States Copyright Act.

Sound Recordings

Operators of a non-interactive satellite radio or streaming service are entitled to license sound recordings under the statutory license contained in Section 114 of the United States Copyright Act (the statutory license). Under the statutory license, the company may negotiate royalty arrangements with the owners of sound recordings or, if negotiation is unsuccessful, the royalty rate is established by the Copyright Royalty Board (the CRB). Sound recording rights holders, typically large record companies, are primarily represented by SoundExchange, Inc. (SoundExchange), an organization which negotiates licenses, and collects and distributes royalties on behalf of record companies and performing artists.

Pandora Services: For its Pandora services, the company has entered into direct license agreements with major and independent music labels and distributors for a significant majority of the sound recordings that stream on the Pandora ad-supported service, Pandora Plus and Pandora Premium.

Research and Development

During the year ended December 31, 2023, the company’s research and development expenses were $276.

Trademarks

Sirius XM Business

The company has registered, and intend to maintain, the trademarks Sirius, XM, SiriusXM and SXM with the United States Patent and Trademark Office in connection with the services it offers. The company also has registered, and intend to maintain, trademarks for the names of certain of its channels. The company has also registered the trademarks Sirius, XM and SiriusXM in Canada. The company has granted a license to use certain of its trademarks in Canada to Sirius XM Canada.

Pandora and Off-platform Business

The company has registered, and intend to maintain, the trademarks Pandora, Ampcast and Music Genome Project, in addition to a number of other Pandora logos and marks, with the United States Patent and Trademark Office in connection with the services it offers. The company also has registered the trademark Pandora in Australia, Canada, Chile, the European Union, India, Israel, Mexico, New Zealand, Switzerland, Taiwan and other countries, and the trademark Music Genome Project in Australia, Canada, China and New Zealand.

History

Sirius XM Holdings Inc. was incorporated in the state of Delaware in 2013.