SiriusXM, which has offered an ad-free alternative to subscription-based terrestrial radio since the turn of the century, has now launched a free, ad-supported service available only in cars as it looks to gain ground on AM/FM alternatives.

The company quietly launched the service last quarter and addressed it in its most recent earnings call.

“This quarter, we introduced Free Access to SiriusXM, our first free, ad-supported version of SiriusXM, now available in select vehicles,” said CEO Jennifer C. Witz. “Free access allows us to target prospective customers … with an offering of a limited number of music and talk channels with advertising.”

The service is not yet available nationwide, but Witz said the company expects free access “to grow in the coming years, giving us the opportunity to increase trials, win back listeners and explore the potential for a broader ad-supported offering from SiriusXM.”

The entertainment company reported a 173,000 drop in satellite subscribers in the second quarter — 100,000 of which were paying subscribers. (The rest were promotional and trial subscribers.) The drop in paying subscribers was better than the 130,000 it lost in the second quarter of 2023.

Total revenue was $2.18 billion, a decrease of 3%.

SiriusXM has a loyal user base, but AM/FM still controls 60% of ad-supported and ad-free in-car content, according to Edison Research’s Share of Ear survey for Q1 2024. (And it controls 86% of the ad-supported market.)

The company has also faced increasing competition from streaming services such as Spotify and Apple Music in recent years, making it harder for SiriusXM to convert trial users into paid subscriptions.