Release Date: February 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: On your website, Slacker Radio is offered for $3.33 per month or $39.99 annually. Is this the ARPU we should expect going forward? A: Robert Ellin, CEO: The ARPU is challenging to pinpoint exactly, but we plan to raise prices. With the changes in our Tesla partnership, many customers are opting for annual subscriptions. We see a significant opportunity to increase prices, similar to Spotify's recent hikes. As we gather more data, we anticipate expanding our pricing strategy over the next 12 months.
Q: If I buy a Tesla today, do I get free service initially? A: Robert Ellin, CEO: As of December 4, we renewed our contract with Tesla, allowing us to upsell customers. New Tesla owners can choose between ad-supported or subscription services. We recently launched a free ad-supported option, which has attracted over 450,000 subscribers. This approach helps us re-engage users and offer subscription deals.
Q: Podcast One's costs are rising faster than revenue. When will margins stabilize and improve? A: Robert Ellin, CEO: The onboarding of new shows involves upfront costs, and advertisers typically pay in 90 to 120 days. We're aggressively signing talent to capture market share. As these shows mature, we expect revenue streams to improve margins. The industry is in a land grab phase, but we anticipate margin improvements in the next 6 to 9 months.
Q: Are you monetizing ad-supported subscribers from Tesla yet? A: Robert Ellin, CEO: We launched the ad-supported service on December 4 and partnered with Dax for programmatic advertising. It takes 90 to 120 days for advertising revenue to kick in. We're still adding subscribers daily, and we expect to achieve $3 per month from ad-supported users within 6 to 9 months.
Q: How close are you to generating revenue from sources other than Slacker and Podcast One? A: Robert Ellin, CEO: Our publishing business is growing, and we've launched a coffee product that sold out on the first day. While these won't immediately transform our revenue, they are on a growth trajectory. We've also sold three TV shows, which could significantly boost our bottom line if successful.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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