Sirius XM Holdings Inc. (NASDAQ:SIRI) J.P. Morgan 52nd Annual Global Technology, Media and Communications Conference May 21, 2024 10:50 AM ET
Company Participants
Jennifer Witz – CEO
Conference Call Participants
Sebastiano Petti – J.P. Morgan
Sebastiano Petti
Good morning, everyone. I’m Sebastiano Petti. I cover the Cable, Satellite and Telecom space here at J.P. Morgan. I want to introduce Jennifer Witz, CEO of Sirius XM. Jennifer, thanks for joining us today.
Jennifer Witz
Thank you for having me Sebastiano.
Sebastiano Petti
So Jennifer, as you think about the numerous changes going on in the business, you had namely investments in advertising and MarTech. You have the revamped app 360L and growth drivers like Podcasting. Help us think about — anything I missed, but help us think about how you’re positioning the company for growth over the long term.
Jennifer Witz
Sure. So it all starts with our robust and differentiated position in audio overall, which is really based on our leading content portfolio and our really diverse and unique set of distribution channels. And we’re leveraging these strengths to focus on three key priorities, and you’ve heard us talk about these before. But the first one is to put us on a path to future subscriber growth by enhancing every part of the consumer experience. The second is capitalizing on opportunities in our ad business. And the third is really driving more efficiencies across the business to improve upon our already strong financial position. So if I could just dig into each one of these a little bit more. On the first, in terms of enhancing subscription value, we are confident that the investments we’re making, whether it’s in our exclusive content, in our new brand platform or the tech capabilities we’re bringing to our platforms are going to bring new audiences into our products and help them discover their next favorite artist channel, podcast or show. And then beyond that, with the launch of our new streaming platform and app, we have incredibly enhanced capabilities across personalization, discovery and control. So we’re solving for the key pain points with these new audiences across our products. And all this innovation that we launched on the streaming platform will come into our 360L implementations over time as well. We launched streaming with a new price point of $9.99, which is designed to appeal to a younger set of audiences, more diverse and digitally native, and that’s starting to resonate with these audiences. And we’re seeing progress in the pricing and packaging that we’re testing for our in-car business as well.
And then all of the work we’re doing kind of behind the scenes to improve capabilities in marketing, which hopefully we’ll talk more about, really is designed to improve how customers access content in the app because of what we’re showing them through our marketing journey. So these customized journeys will start to roll out in streaming now that we have much more data inside the sales force tools. But all that learning is going to help us design better marketing journeys on the in-car side of the business in the second part of the year as well. So it’s across every piece, whether it’s content, it’s the product capabilities, it’s pricing and packaging that we’re enhancing the subscription experience that will put us on a path to future growth. And then on the advertising side of the business, we’re leaning into the core strengths we have, whether it’s our — the sales force. We’ve been in the ad business for over 15 years and we have an incredibly strong sales force that knows how to capitalize on opportunities there. We have leading edge tech and real innovations that we’re bringing to allow advertisers, whether they’re big or small, to access our scaled audiences. And then we have an incredible set of audio talent. And of course, we’ve announced that we’re bringing SmartLess to the content portfolio. And really proud of the investments we’ve made on the podcasting side, because they enhance our ability to bring advertisers into our streaming and podcast network overall. So we’re really well positioned on the ad side of the business.
And then just in terms of the efficiencies we’re bringing to the organization, it crosses everything from rationalizing our real estate portfolio and things like that, but also bringing our marketing teams together to have a better go-to-market strategy and be agnostic about our distribution channels. We’re finding efficiencies there. And then we’re investing in the AI, not only to enhance productivity of our employees but to deliver a better customer experience as well to our subscribers as they call, call centers or go through our chat function. So these three priorities, I’m confident will allow us to return to growth overall and continue to deliver really strong financial performance.
Question-and-Answer Session
Q – Sebastiano Petti
All right. Great. A lot to cover there, we’ll definitely come back to. But as you’ve had more time in the market with some of these platform changes, how is your expectation for the time line it takes to return to the growth changed? On the 1Q call, you didn’t acknowledge that it’s taken maybe a little bit longer to see some of the improvements post platform relaunch. Maybe you can help us think about what caused some of those delays as well?
Jennifer Witz
Yes. Well, first, I’d say we feel really good about our guidance for the year across our financial metrics. But yes, after we launched the streaming app in the December of ’23, we did see some disruption across our subscriber base. And we were quick to make improvements in several releases that we put into market over the course of the first quarter and really iterated fast. I’m really pleased with the capabilities that we have in order to do that. But we did — it did set us back probably about a quarter in terms of rolling out our MarTech stack. So we’re now on track there. We’ve got real listener, personal, one-to-one, listener data coming into the sales force tools to really customize the marketing journeys there. And it’s incredibly fundamental and I can’t emphasize this enough that we better leverage that data to improve early in trial engagement for streamers, because that is a very strong leading indicator of ultimate streaming retention. The same thing goes for the in-car side of the business. Early indicators of strong listening in trial in-car lead to better conversion rates, and both streaming retention and in-car conversion are keys to longer-term subscriber growth.
Sebastiano Petti
Okay. So while still early, new app trial was only launched in December. And you mentioned you were seeing positive leading indicators. I mean, any other kind of early lessons? And I mean how confident are you that this new streaming platform can penetrate this maybe new younger TAM? It’s something we get questions on as well.
Jennifer Witz
Yes. So we have some good leading indicators. It’s still early, and we have a three month trial structure, so it’s going to take a while to work through. But so far, we’re seeing more days listening among active listeners, which speaks to that early engagement. We’re seeing a broader set of content being accessed by streaming listeners. And that points to, in particular, improvements in podcast engagement and our sports offering, both where we’ve made investments on the content side. So we’re really pleased to see that performance. And we’re also bringing really capitalizing on these content moments that we have, whether it’s the Taylor Swift pop-up channel or it’s Ashley Flowers’ new true crime channel, and leveraging that in our performance media to drive trials. So we are seeing interest in the content that we have and then we can onboard customers into our streaming experience much more quickly than we could say in the in-car business where it’s harder to build that end-to-end onboarding process. So everything we’re learning here, we feel really good about rolling that through to the in-car business and continuing to see opportunities to really build out and improve conversion rates there.
Sebastiano Petti
Okay. And so SIRI does not typically give quarterly guidance, but you do expect better year-over-year sub performance in the back half of the year, driven by product enhancements and higher conversion rates. Given the slower ramp in the first half, what gives you confidence that ’24 subs can get better than ’23? And then maybe help us think about some of the MarTech and other platform improvements that will probably come online?
Jennifer Witz
Yes. So the first quarter was down year-over-year in terms of net adds, mostly because of vehicle related churn. And I would expect the third party analysts are converging around sort of SAR in the high 15 million range, and so that should stabilize as we go over the course of the year. And so we should see the higher conversion opportunities that result starts to roll through and result in higher conversions in the second half of the year, and not as much of that upfront vehicle-related churn rolling through. But speaking of the MarTech enhancements, it goes back to what I was talking about earlier where if we’re rolling out these personalized journeys and we’re starting to see improved engagement early in trial in streaming that will roll through to improved streaming net adds as those trials mature. And we would — we expect to roll — ramp up some of these marketing improvements on the in-car side of the business starting in the summer. And again, it’s going to start with low volumes, but work its way through the trial structures. And by the end of the year, I think we should have some good indication as to how that’s rolling through conversions and that plays into our guidance as well. So we still feel confident that we will deliver better overall net adds this year versus last year and we’ll start to see that materialize in the numbers in the second half.
Sebastiano Petti
So should we expect second quarter net adds to come in better year-on-year?
Jennifer Witz
I’m not going to comment on the second quarter specifically. Thank you for the question.
Sebastiano Petti
I figured [Multiple Speakers] no problem. So you did reduce prices for the digital only tier last year in conjunction with the relaunch. You also alluded to some more testing or trialing of some of these lower priced packages to try to capture some of that demand there at lower price points, but with less content. Is that — help us think about maybe some of the ways that you would — you are trying to think about limiting cannibalization of the high monetization tiers as you introduce some of these other kind of lower priced offerings?
Jennifer Witz
Yes. So we launched the streaming product at $9.99 and that compares to our core in-car product at about $19 today. And there’s real differentiation in there because, of course, in-car, you get streaming access as well. So it’s really like having two subscriptions. But — and we’ve talked a lot about the testing we’re doing on the in-car business for pricing and packaging. And we’re trying to solve for three things, which means we need to be very thoughtful about how we go through this. We want to open up more demand because we know that price has been a challenge in bringing new audiences into our products, whether that’s in-car or in streaming. And we want to make sure that we’re preserving our full price base where we’ve been able to, over time, increase prices and also maintain really low churn. And we also want to make sure that we have opportunities to reduce our reliance on promotional discounted plans, which we use in acquisition and retention. So we’re trying to solve for multiple things. And we are seeing some progress in the testing we’re doing on the in-car side of the business. We’re leveraging different things to create that packaging differentiation. So whether it’s access, streaming versus in-car or content availability or even over time, we would expect to use more availability of ads to create that differentiation as well. But I do think we’ll have opportunities to both capture more demand but also maintain that full price base at those higher price points and implement rate increases over time.
Sebastiano Petti
And so while we might be seeing some dilution this year from some of the strategic efforts. Over time, you still expect that you have the ability between your different pricing and packaging to return ARPU back to growth?
Jennifer Witz
It’s really about driving revenue growth. And I believe that we have opportunities to increase rates. We certainly have been able to do it in the past and we plan to do that sort of on every other year cycle that we’ve done historically. But I also don’t want to compromise on being able to capture more demand at lower price points. So it really is about leaning into that differentiation and making sure that we are offering attractive products and price points to younger audiences.
Sebastiano Petti
And so thinking about 360L, I think you noted there’s 3 million self pay customers today with 360L and 12 million total 360L cars on the road. Any update on how you’re thinking about the learnings from these cars or the data that you’re getting back and how that’s perhaps enhancing some of your decision making? And net-net, I mean, is the promise of 360L beginning to bear fruit?
Jennifer Witz
It’s really impressive to see the results on our 360L trials and our self pay subscribers. So we see better conversion rates. We see better self pay retention, so lower churn rates, and we see higher ARPU among our 360L customers. So — and it makes sense, it’s the most advanced platform we have, it has a lot more personalization and control and discovery features built into that platform. So just like what we’re seeing on the streaming side of the business. So we’re very eager to continue the 360L rollouts. We are at about 35%, 40% of our trial — our new car trial starts this year with 360L and we should be able to pass the 50% milestone next year, of course, on the new car side. And we continue to look for opportunities to drive future parity across the implementations, which AAOS will certainly help with that. And then it’s really about the awareness, not just that you have 360L, but that you have these enhanced features. We’ve done a fair amount of testing, A/B testing in For You, which is buried unfortunately, in some implementations, but where customers are getting into For You and seeing these recommendations they’re responding to the content we’re showing them in the product. So I’m feeling very good about where we are with 360L. And yes, I would hope that we can roll it out even faster.
Sebastiano Petti
And so as you’re thinking about, I think you alluded to this ad-supported opportunity that may be coming down the road here. I mean, is this a five, 10-year kind of initiative, I mean, until kind of 360L gets to greater scale from 12 million today?
Jennifer Witz
Yes, it’s — right now, we’re testing just really low volumes but a persistent free tier. And just with a couple of OEMs it has a reduced channel set and there’s ads across music and talk channels. And right now the primary focus is, because it will be broadcast ads to start, but primary focus is how do we use it for upsell into subscription. And you should expect anything that we do on the in-car side of the business, we would look to replicate on the streaming side as well. So clearly, video streamers have capitalized on this, creating different products and packages based on using ads. So we could either use it as a persistently free tier that’s totally ad-supported or we could look at a lower cost subscription with ads to create that package differentiation. But over time, in the car, we’ll be able to bring IP targeted ads there. So to your point, it really — in terms of monetizing through ads, and it’s a great complement to the rest of the ad network we have across streaming and podcasting to have IP targeted ads in 360L, we need to build [raw] volume to really drive revenue there. So I suspect in the early days, it’s mostly going to be about keeping that free tier on so that we can upsell into subscriptions over time.
Sebastiano Petti
And help us or remind us of the latest comments or latest announcements you guys have made about thinking about the volume of 360L vehicles. So from 12 million today, how are you — what is the maybe three to five year roadmap in terms of how you’re thinking about the size of that fleet?
Jennifer Witz
It takes a long time to roll through the fleet, obviously. And so we’re very focused on trial starts because that’s where we can really make an impact in terms of conversion. And again, on the new car side, we’ll be at about 40% for the year this year, going over 50% next year, that starts to show up and use. And those are the opportunities that we have, whether it’s customizing the experience in the car with things like ignition on recommendations, which no one else does really effectively in the car. So as soon as you get in the car and we have this with low volumes today, we’ll serve up a set of recommendations, either based on what we think you’ll like on other data if it’s cold start or based on your listening. And so that gets people into this new content because one of our single biggest pain points is discovery, right? People don’t want to flip through the channels anymore necessarily. So continuing to roll out features like that enhances our ability to convert subscribers. And that is what’s so core to future growth is reversing this trajectory on conversion rates. So these kinds of investments in recommendations and personalization can also bring that through to the marketing investments that we’re making and customize those journeys. So that’s why the trials are such a big area of focus for us because that’s where we can really impact future growth.
Sebastiano Petti
In terms of 360L, you said 40% to 50% of trials. What’s the march higher, is that probably the level over the next several years or when does it get to…
Jennifer Witz
We should get in the next sort of three years, I would say, we should get up to probably about 75% of our trial starts with 360L.
Sebastiano Petti
And so obviously, we’re spending a lot of time on conversion. And then is some of these in-car features that are coming down the road should help with the conversion rates. But I mean, is it also about getting some of these — the new tier in front of younger demos. Is that a portion of it as well and how does — how are you thinking about that?
Jennifer Witz
So it really all comes back to our new go-to-market strategy, which is about being agnostic as to where customers listen. And in some ways, it may just be that we have two different audiences generally speaking where a younger set of audiences who are just digitally native are happy to use streaming in or out of the car and then our core segments and audiences and our subscriber base we’ll continue to leverage the enhanced and by the way, much more safe experience of the integrated 360L experience that we’re rolling out. And so I think we’ll be able to address demand in both those audiences, whether they’re listening in the car or out. And I think it’s really fundamental in terms of how we’re looking at the go-to-market to really just from the top of the funnel where we’re investing in new brand platform, it’s about developing resonance with the content we have. So it’s all — the campaign that we’re rolling out is closer. We bring you closer to the content you love. And then using content marketing at a more segmented level in performance media or even targeted personally to drive customers into the content in our products based on things that really make sense for them. And then, of course, completing that personalization in the product by surrounding people with content that they love once they’re there. So this whole sort of full funnel strategy and marketing assumes that when we’re onboarding customers, we can bring them into the packages that make the most sense for them based on how or where they want to listen.
Sebastiano Petti
And I guess that dovetails into how — as you’re thinking about the long term competition in audio and you have in-car operating systems like Android, Apple CarPlay. I mean how are you thinking about — is the positioning of the new app intended to just help SIRI maintain share as things kind of get a bit more fragmented? How are you thinking about that?
Jennifer Witz
We have opportunities to capture more share, I think, in the car with streaming, but we already have a very strong position in terms of share of year in the car. And that’s despite only being in so many cars on the road. But our premium positioning, right, complementary to other audio services, we’re going to continue to lean into that. We have a really strong set of content that’s differentiated from these other audio services. And so we expect to be a complementary service to whatever your other music streaming service or podcast service is. And so that positioning, I think, gives us a really strong opportunity to build listening and share a view both in the car and outside of the year — outside of the car.
Sebastiano Petti
So shifting gears to Pandora and off-platform segment. Second — first quarter on-platform and off-platform ad trends were better than expected despite what appears to still be a choppy market. Can you update us on what you’re perhaps seeing thus far in the second quarter?
Jennifer Witz
Yes. The first quarter, we had a really strong performance. We’re up 7% year-over-year and that was basically across every piece of our ad business. And late in the first quarter, we did make some organizational changes to the sales force and that’s been a little disruptive to second quarter performance, and nothing that we didn’t expect to happen. But I think the teams are just settling into the new structures and the new comp packages, et cetera. So I think as we look at the second quarter overall, though, the trends continue. So the prevalence of advertisers wanting to buy kind of late in the cycle, leveraging programmatic is really good for our business, and we continue to see those trends. It does make it harder to get a read on an individual quarter because advertisers are booking late. So it really comes down to the last three to four weeks of the quarter. But there’s a lot of strong trends across our core categories, whether that’s automotive, travel, CPG, retail. And then going through the second quarter into the third quarter, we’d expect to see much higher political, of course. Pharmaceutical has been strong. And I mentioned programmatic continues to be very strong. And of course, going into — we’re already selling it, but we’re adding SmartLess to the portfolio officially in August. And we’ve gotten a lot of excitement among the sales team and in advertisers in bringing that to our already very robust podcast portfolio.
Sebastiano Petti
So it’s a great segue. So as the podcast business continues to scale, you’ve called it out as one of your — one of the biggest areas of incremental content investment. And then you talked about sell-through, improved programmatic, but you’ve also alluded to other features perhaps coming later this year. Can you help us think about how have these investments on the content technology side help differentiate SIRI from peers to the extended podcasting?
Jennifer Witz
Yes, I’m really proud of our position in podcasting because we’ve sort of set a different path than many other companies. And it starts with — we’ve always been a really talent friendly company. And there’s no short of podcast talent, I guess, that would love to work with us and we’d love to work with. And we have a great set of talent relationships across the major podcast networks, and I think there’s more opportunities for us there. So it starts with the talent that we’ve brought to the platform. And then it extends through to our distribution strategy, which is broad based. So we generally let the talent continue to distribute across third party platforms but we’re also looking for opportunities to bring these creators, whether it’s Ashley Flowers on the true crime channel or it will be with SmartLess to bring some content behind the paywall to offer more value to our SiriusXM subscribers and give the creators access to new audiences. And then it comes back to our tech and the tools we’ve had there, continue to bring more brands into the space because of the solutions we’ve brought across, targeting, measurement, transparency and just — and brand safety and suitability. So that goes back to a lot of advertisers want to come in and buy a show specifically, but the sell through on some of those big shows is really high and we’ll continue to improve monetization there. But also selling across the network and targeting audiences, which works in a lot of other advertising has really been a tailwind for us in the podcasting space. And then in terms of the — you mentioned on the feature set. So we expect to build out more podcast capabilities and features in the SiriusXM app. And part of the reason for that is we are seeing an uptick in consumption of podcasting, not surprisingly and our talk on demand. And so we’ll continue to invest there as well.
Sebastiano Petti
Great. And then so moving to the financials. So run rate cost savings were $45 million in 1Q ’24 and this is versus your annual target, I think, of $200 million recently announced. But a portion of these savings have been reinvested into the business but with a focus on maintaining overall EBITDA margins. Help us think about the long term margin profile of the business as you think about what we discussed on the SiriusXM side, maybe focusing more on revenue growth as opposed to ARPU specifically, the digital tier, the ad mix that we just kind of talked about, again and also maybe future cost opportunities?
Jennifer Witz
Yes. So that’s a lot. We have very strong contribution margins and EBITDA margins, as you know. And so the ability to drive margin growth overall on the EBITDA side is largely a function of driving revenue growth, and that’s why we’re very focused on subscriber and ad revenue growth. And our margins on — variable margins on streaming or in-car subscriptions are both really strong given our licensing structure. So feel really good about the contributions that we’ll drive in growing subscribers on either side of the business. And we’re continuing to — as we talked a little bit about lean into finding efficiencies across the organization. So to the extent that we’re not seeing growth in the near term, we’ll continue to drive costs out of the business to help improve margins and fund the investments that we’ve been talking about. And just to give one example there, really excited about the work we’re doing with Sierra on the AI front for customer service, because it’s one of those things, and we talk a lot about AI. But this is one of those areas where it just solves for multiple objectives. We are seeing lower cost to serve, we’re seeing better business outcomes, and we’re seeing better customer service. It turns out that some of the AI agents are very empathetic.
Sebastiano Petti
Interesting. And maybe how are you — where are you maybe in that stage of implementing or rolling out AI efficiencies, perhaps more broadly across the business?
Jennifer Witz
I’d say we’re just getting started. And in my opinion, for SiriusXM, it’s largely about productivity enhancements and cost efficiencies. It’s less about the consumer facing product. I mean we’ll use it in marketing. Obviously, there’s a lot you can do and we’ll use Salesforce Einstein to really iterate and design customized marketing journeys as we talked about. But it’s less about we’re going to replace all our hosts with AI hosts, right? We really believe fundamentally in the differentiation of our content and leveraging the host and the curation that we bring, which is very different than what other services are doing. I think you’ll see a lot of other audio services out there leaning into AI to deliver a more personalized experience, and somehow in my opinion, that takes away from the authenticity of what we are offering. So we won’t be doing that.
Sebastiano Petti
But you would — maybe not necessarily consumer side or consumer facing from a talent perspective, but as maybe leveraging it to be more efficient from a sales marketing perspective, promotional, I mean, there’s probably…
Jennifer Witz
Absolutely. On the ad sale side of the business, we’re using synthetic voices, which again, it brings more opportunities to smaller businesses to scale their ad campaigns, right? And we talked about customer service, we talked about sales force and the marketing side to customize the journeys. And also in the product, we’ll use more machine learning and AI capabilities to deliver more personalized recommendations in our products in 360L and streaming.
Sebastiano Petti
Great. And then so thinking about CapEx, I think you expect peak CapEx in ’24, some non-satellite spend, however, could remain high into 2025 as you refresh some of your legacy systems. Any help on how we should think about the level of non-satellite spend and satellite spend in 2025 and maybe kind of comparative to what we’re seeing or anticipating in ’24?
Jennifer Witz
Yes. ’24 should be a peak year across total CapEx. And we’ve laid out, I think, some guidance in the past about the satellite side. And this year is roughly equivalent to last year at about $280 million, $300 million level, that should drop to about $175 million and continue dropping thereafter and get close to zero by 2028. The exact timing is obviously a function of the timing of the launches of those four satellites. But then on the non-satellite side, we’re definitely at a peak year this year as we roll out the new platform and tech capabilities. So that’s first started with streaming. We are prioritizing some improvements on the marketing side for the in-car business, which means that we’ll probably push out some of the improvements to the tech stack on commerce and identity into next year. So I think non-tech CapEx will remain elevated to some extent next year. We also have some end-of-life replacements going through the broadcast and terrestrial side of the business. But then beyond that, it should come down to a more normalized level that is probably around $300 million or slightly lower than that in ’26 and beyond.
Sebastiano Petti
Okay, that’s helpful. And then wrapping up here. And so thinking about leverage, on the 1Q call, the company reiterated expectations to return to your target leverage range of about — of low to mid-3 times in the back half of ’25. With the stock having re-rated, how do you evaluate potential share buybacks near term or take advantage of current valuations, which maybe then perhaps could delay that return to the target leverage range?
Jennifer Witz
So we’re focused on completing the Liberty transaction and still expect that to be in the early part of the third quarter. And after that, yes, we’ve talked about target leverage in the low to mid-3s. And the foundation of the business and our margins and our cash flow is incredibly strong and we expect tailwinds beyond operating performance on the cash flow side of the business, given CapEx that we talked about in taxes. So that gives us a lot of opportunity. And I would expect us to continue to target that leverage ratio. We have time to get there. And yes, to the extent that there’s dislocation in the market, we could enter the market for share repurchases post deal.
Sebastiano Petti
Okay. And we have some questions coming in over the line here. Any update on the Audible deal?
Jennifer Witz
So we are in process. I believe later this month or perhaps early June, we’ll roll out the first phase of that. And it starts small but I’m really excited about our opportunity to work together given the very similar, I think, subscriber bases and opportunities to offer one and other services and trials to each of our subscriber bases.
Sebastiano Petti
And then I wanted to just touch on one item that maybe earlier as you’re kind of thinking about the digital only product and you’re kind of thinking about the legacy satellite product. Because on the call, you talked about maybe some subs don’t understand why the digital only tier doesn’t come with the in-car listening. Is this just, again, more of a function of early days of getting branding, marketing campaign and just helping folks understand the product or does it make sense to have — to position the tier with some different brand? Because I mean over time, we’re just thinking — I mean, is there a branding issue or could that be — is that a consideration you’re thinking about?
Jennifer Witz
It really goes back to the go-to-market strategy. And our ability to really drive this new campaign and closer, bringing people closer to the content we have, because that’s where we’re really differentiated in terms of our content portfolio, and so bringing that to market, having customers understand the breadth of the content we have. And we’re seeing strong signals on brand perception and impression as a result of this campaign and this new brand launch. And so again, it starts at the top of the funnel, bringing people in through content marketing and into the products. We think we have a better chance then to educate customers on which package is right for them based on how and where they want to listen. And this is really core to future growth, right? Because it really is that first priority of driving improvements in our subscription business and returning to subscriber growth that’s fundamentally about providing more package choice and educating customers about the strength of our content offering. And then, of course, leaning into opportunities in our ad business and efficiencies in our org structure and our business overall that will continue to put us on the path to future growth.
Sebastiano Petti
All right. Well, thank you, everyone, for joining us. Thank you, Jennifer.
Jennifer Witz
Thank you.
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