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SiriusXM Warns of $1 Billion Impairment Charge for Pandora

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SiriusXM, the home of Howard Stern, said it expects to record a $1 billion non-cash impairment charge for its Pandora music streaming service, due mainly to the impact of per-play royalty payment costs. "The uncertainty we have this year and the potential for higher royalty costs will likely drive lower margins and have a meaningful impact on Pandora's profitability over the coming years and this drives the bulk of the expected impairment," Jennifer Witz, newly-installed CEO of the audio entertainment giant, told the 2021 Citi TMT West Conference during a session that was webcast on Thursday.

Besides statutory royalty rates for artists, Pandora has direct licensing deals with major label groups. And Witz said a recent fall in ad revenue for.

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