SiriusXm’s CEO Mel Karmazin, who is leaving the company in February, has spoken out about some internet radio services, saying their business models are “a race to the bottom”.

Speaking out during a third quarter earnings call this week, Karmazin called advertising-based services such as Pandora “a race to the bottom in terms of business model.”

"Those companies which can grow users and provide good customer experience usually have the worst business models [and to combat that they require] ...