A partnership announced between a top social media app and audio entertainment company could help boost the audience size and increase paid subscribers.
What Happened: A new channel was launched on Friday called TikTok Radio, as a collaboration between TikTok and SiriusXM Holdings SIRI.
The channel will present music and share the stories behind some of the top trending songs and audio clips being shared in TikTok videos.
Top followed personalities on TikTok will be among the hosts of the new radio station found on Channel 4 for SiriusXM subscribers.
Dixie D’Amelio, Ed Sheeran and Lil Nas X are among the names listed to make appearances on TikTok Radio.
Bella Poarch, whose lipsync video of Millie B’s “Soph Aspin Send” is the most liked video on TikTok, will also appear on the new station.
A weekly countdown of the top 10 trending songs on TikTok will air on Fridays at 3 p.m. ET.
“Our groundbreaking new channel with TikTok is a first-of-its-kind, capturing the pulse of the global music culture, vibrancy and vitality found on the entertaining social platform and recreated as a full-time music channel on live national radio and our streaming platforms,” SiriusXM President Scott Greenstein said.
Related Link: Never Break The Chain, Fleetwood Mac Downloads Surge After Viral TikTok Video
Why It’s Important: Streaming companies are competing heavily for the attention of Gen Z-ers. TikTok is one of the most popular destinations for Gen Z and companies like Apple Inc AAPL and Spotify Technology SA SPOT are launching “viral hits” playlists to try and capture this audience.
Top trending songs on TikTok are often searched for by Gen Z-ers and the new channel by SiriusXM marks the first full-time channel dedicated to viral hits across the social media platform.
“TikTok creators will be delivering new audio experiences for our listeners as they tap into the latest music trends on TikTok,” Greenstein said.
The new channel follows on a partnership between TikTok and Pandora, a SiriusXM company, that launched earlier this year with dedicated playlists. The partnership included TikTok Tastemakers and TikTok Hits playlists on Pandora.
SiriusXM is a leader in the audio entertainment field with more than 150 million listeners. Rival Spotify has 165 million paid subscribers, while SiriusXM counts only 41 million paid subscribers across the SiriusXM and Pandora brands.
The second-quarter revenue of $2.16 billion was up 15% year-over-year for SiriusXM. The company added 355,000 net new paying subscribers in the second quarter.
“SiriusXM added an impressive 355,000 net new self-pay subscribers in the quarter, putting us on track to add 1.1 million self-pay subscribers this year, our best since 2018 and we are increasing all of our financial guidance,” SiriusXM CEO Jennifer Witz said.
SIRI Price Action: SiriusXM Holdings stock is up 8% over the last year and remains near flat year-to-date. Shares have traded between $4.95 and $8.14 over the last 52 weeks. SIRI was down Monday morning 0.078% at $6.30 a share.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
