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XM Satellite Radio, AOL Tradeoff Creates New Online Service

A new co-branded service between AOL and XM Satellite Radio promises to aid AOL’s desired turnaround. (AOL hopes that beefing up its radio services, by providing greater access to programming via its web sites, will persuade subscribers to stay with their service.)

In the new deal, AOL subscribers will get free access to about 70 XM commercial-free radio channels. And XM benefits from the trade-out by obtaining enormous brand building opportunities with AOL’s 22 million subscribers.

Editor’s Note: XM Satellite’s competitor Sirius Satellite Radio, which continues to move in a different direction by working with high profile celebrities, has just announced a four-year agreement to create and launch a channel with Martha Stewart. The branded channel will be aired 24/7, and feature Stewart on a regular basis sharing her expertise in the home and garden.