The new SiriusXM app and streaming plan are aimed at attracting younger customers.

• On December 14, SiriusXM will introduce a new app and streaming plan, as announced on Wednesday.
• The streaming platform of the satellite radio provider aims to draw in younger customers.
• The company relies on its "human touch" and function as a discovery tool for listeners with personal music collections.

The company announced on Wednesday that it will introduce a revamped app and a new streaming plan in an effort to attract younger customers.

On Dec.14, the company will introduce its new offerings, initially available on streaming platforms, followed by in-car interfaces. The monthly cost for the new plan will be $9.99.

During an event on Wednesday, CEO Jennifer Witz stated that our target audience for growth consists of millennials and younger generations who are willing to pay for unique experiences. The event, which featured Howard Stern, Conan O'Brien, Andy Cohen, Kevin Hart, and a performance by Kelly Clarkson, was star-studded.

Sirius XM, which features well-known hosts such as Howard Stern and Andy Cohen, is hoping to attract younger generations, who are accustomed to using Spotify or Apple Music, with its new app interface. This move is aimed at boosting sales and increasing its market share, which has declined by 20% this year.

The app will now provide "always-on" curation and a personalized library featuring four new stations on the app landing page: Music, Talk & Podcasts, Sports, and For You. Additionally, the app will offer enhanced search, improved podcast listening, and greater content discovery, the company announced in a press release.

Chief Product and Technology Officer Joe Inzerillo informed CNBC that the current app only streams the radio on the phone, but the new app will provide additional features that will be reflected in the car.

Listeners can seamlessly resume listening to podcasts, interviews, or sports games on any device without losing their place.

A Thursday note from Morgan Stanley stated that "improved listening experience typically leads to lower churn, higher conversion, net adds, and higher customer lifetime value over time."

In the third quarter, SiriusXM lost 94,000 satellite radio subscribers.

The company aims to differentiate itself from other streaming competitors through its "human touch," as exemplified by the launch of new year-round SiriusXM channels featuring music superstars Dolly Parton, Kelly Clarkson, and John Mayer.

The company is simplifying its pricing structure by offering a new Streaming All Access Plan for $9.99 a month, which is $1 cheaper than its current all-inclusive streaming plan. This cheaper price tag is aimed at attracting millennial and younger customers who may already pay for another streaming service.

Witz stated on CNBC on Wednesday that the product is viewed as a complementary addition, acknowledging that individuals already have a separate music collection. However, the company's focus is on providing new discoveries.

The analysts at Morgan Stanley believe that implementing changes may attract younger listeners to the company.

The new product has the potential to attract a wider audience, particularly younger, streaming-only consumers, according to a note released on Thursday. The $9.99 per month price point may help. However, the product will face stiff competition from established players such as Spotify, Apple, and Amazon when it comes to its in-car product compared to AM/FM radio.

SiriusXM 360L technology will be included in Select-model 2024 Polestar vehicles, providing a combination of satellite and streaming features, the company announced on Wednesday.