The news: Satellite radio company SiriusXM is launching a lower cost ad-supported option in its effort to compete against streaming music giants like Spotify and Apple Music, per a press release.

• The ad-supported plan, known as SiriusXM Play, costs under $7 per month, with an ad load around half of traditional AM/FM radio stations’.
• The tier is available for both streaming and in-air, and is currently accessible in a limited capacity. The company expects more rollouts and additional package pricing in upcoming months.
• SiriusXM is positioning the new offer as an opportunity for advertisers to “[reach] listeners in the moments that matter” as ad-supported audio gains traction across generations.

Zooming out: SiriusXM’s decision to debut an ad-supported streaming option reflects its broader, strategic response to the structural challenges it has faced in a landscape dominated by major music streaming players.