OT Sirius Plans Video Service in 2006
NEW YORK (AP) - Sirius Satellite Radio Inc. on Wednesday said it is moving ahead with plans to add a video offering to its premium radio service next year, landing a deal to use Microsoft Corp.'s media software to power its mobile video platform.
Sirius also reached an agreement with the software giant to co-develop future video offerings in its latest assault on rival and industry leader XM Satellite Radio Holdings Inc. The service is expected to launch in the second half of 2006.
With its automotive partners indicating strong demand for entertainment products in new cars, Sirius said it anticipates providing two or three channels of premium content specifically for children.
``We will take the DVD experience to the next level, offering the best content easily available to families and consumers,'' Chief Executive Officer Mel Karmazin said in a statement.
Sirius, which along with XM has pioneered the expanding satellite radio market, broadcasts about 120 channels of commercial-free music and talk-radio programming to subscribers with satellite receivers, as well as via the Internet.
The company recently crossed the million-user mark, ending the year with almost 1.1 million subscribers, while XM reported closing 2004 with 3.1 million customers.
In early Nasdaq activity, shares of Sirius lost 5 cents to trade at $7.47, while Microsoft shares rose 7 cents to $26.91. Shares of XM fell 2.1 percent, or 74 cents, to $34.61.
