Shares of satellite radio provider SiriusXM slumped Thursday after the company announced plans to shut down its Stitcher podcast app.
Stitcher’s $4.99 monthly subscription services will end on August 29, the company said, but the podcasts it offered will still be available on SiriusXM’s own app.
That’s by design, according to an internal memo.
“The scale and reach of our widely distributed podcasts has been and remains a crucial accelerant for our advertising sales business, while incorporating podcasts more holistically into our flagship SiriusXM subscription service will help to drive further growth,” SiriusXM executives wrote.
Stitcher’s website and app generated a combined 900,000 unique visitors as of March, according to data from Comscore. SiriusXM acquired the firm in 2020 for $325 million, which was one of the largest price tags ever for a podcast company.
Now, SiriusXM shares dipped more than 2% to $4.18 Thursday morning.
The move is representative of a podcast industry that isn’t what it once was. Audio giant Spotify recently laid off 200 people in its podcasting division and consolidated its audio production acquisitions Gimlet and Parcast.
Meanwhile, Spotify’s podcast deal with Prince Harry and Meghan Markle’s company, Archewell Audio, expired.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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