Stitcher’s service allows listeners to enjoy podcasts without advertisements at $4.99 per month or they can sign up for a free app.
Why It Matters
Scripps had purchased Stitcher in 2016 for $4.5 million in cash, and it operated as a part of Midroll Media, a podcast industry leader, which Scripps acquired in 2015.
Stitcher owns Earwolf and Stitcher Podcats, which publishes 50 shows such as “Conan O’Brien Needs a Friend” and “Freakonomics Radio,” noted WSJ.
The company’s Midroll Media unit distributes and sells advertising for 250 podcasts like “My Favorite Murder” and “Oprah’s SuperSoul Conversations.”
In 2018, Sirius purchased Pandora Media Inc for $3.5 billion, a company that generates most of its revenue from advertising and also has podcast expansion plans.
According to WSJ, podcast revenue in the United States touched $678.7 million last year and is slated to reach 863.4 million in 2020. The revenue will exceed $1 billion by 2021.
Sirius XM shares traded 0.17% higher at $5.88 in the after-hours session on Monday. The shares had closed the regular session 0.51% higher at $5.87.
E. W. Scripps shares traded 6.79% higher at $8.97 in the after-hours session on Monday. The shares had closed the regular session 1.45% higher at $8.40.
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