AOL and XM To Jointly Create Online Radio Service (WSJ)

[Up2Late]

AOL and XM To Jointly Create Online Radio Service

By JULIA ANGWIN and SARAH MCBRIDE, Staff Reporters, The Wall Street Journal

(April 11) -- Time Warner Inc.'s America Online and XM Satellite Radio Holdings Inc. are expected to announce today that they will create an online radio service together. The new co-branded service, which hasn't been named yet, will replace the current paid service on XM's Web site and will replace AOL's current radio services -- AOL Radio and Netscape Radio. For AOL, the agreement is part of the Internet giant's efforts to turn itself around. In the past two years, four million AOL subscribers have defected, primarily to cable and phone companies that provide high-speed Internet connections. AOL hopes that by beefing up its radio services by providing greater access to programming via its Web sites, it can persuade subscribers to stay with the service. For small but fast-growing XM, with 3.8 million subscribers, the deal is about marketing to AOL's 22 million subscribers. "We get enormous brand building and sampling out of it," says XM Chief Executive Hugh Panero. He believes many of those online samplers will eventually subscribe to his radio service, which costs $12.95 a month.

The move strengthens AOL's position against other big online radio networks, including closely held Live 365 Inc., Yahoo Inc.'s radio service and Microsoft Corp.'s MSN Radio. And it helps AOL and XM compete with online offerings from regular radio networks. Competitors include Clear Channel Communications Inc., which by the summer will be streaming -- or providing Web-site access to -- 300 of its 1,200 radio stations. In addition, Viacom Inc.'s Infinity Broadcasting unit has been streaming stations through AOL but recently announced it would start its own streaming program.

XM competitor Sirius Satellite Radio Inc. offers free streams to subscribers, and a three-day trial of streaming privileges for nonsubscribers.In the new deal, AOL subscribers will get free access to about 70 XM commercial-free radio channels, in addition to the 130 radio channels already offered by AOL. AOL will also offer a limited version of the new radio service on AOL.com starting this summer. That service will carry only 20 XM channels, in addition to the 130 AOL channels. Of the 20 free XM channels, half will stay consistent and half will rotate to introduce Web surfers to more of XM's product.

Currently, AOL has two radio products -- AOL Radio, which is available to subscribers only, and Radio@Netscape, a free product on the Netscape Web site. Together, those sites attracted 10 million visitors in February, according to comScore Media Metrix. AOL, based in Dulles, Va., and XM, based in Washington, D.C., also will create a paid radio service for non-AOL subscribers that will carry about 70 XM stations in addition to all of AOL's stations and a handful of third-party stations.

(unfortunately, the link above works for AOL members only, WSJ is subscriber only too)
<http://online.wsj.com/public/us>

This is reported here too: <http://marketplace.publicradio.org/pm.html>
Marketplace Audio link

[LizW]

1. And here's another story (mentions AAR)

http://www.marketwatch.com/news/story.asp?guid=%7BBB59BA12-6860-4D01-9DBD-12DAA62168C8%7D&siteid=mktw

"Beginning next month, XM's 'America Left' channel will be renamed Air America Radio.

The channel will include an expanded lineup of Air America Radio programming, including the recently launched 'Springer on the Radio' hosted by Jerry Springer, and the upcoming 'Rachel Maddow Show.'

XM's Air America Radio channel also will feature shows currently carried on America Left, including "The Ed Shultz Show" and 'The Alan Colmes Show.'"

[Up2Late]

2. Thanks, that helps a lot

Good job leads too:kick: