New York (April 11, 2005)–America Online and XM Satellite Radio today announced that they will join forces to create a new online radio service, said to be “the world’s largest combined digital radio network.” The new co-branded service will include a free, web radio offering and an enhanced premier radio offering that will be free to AOL members and available as a premium service to consumers on the web.
The new offerings, which are expected to roll out beginning this summer with the launch of AOL’s next generation AOL.com web portal, will be promoted to an audience of upwards of 100 million consumers online.
AOL and XM will co-promote their programs across their networks including to XM’s nearly 3.8 million subscribers and to AOL’s more than 100 million unique monthly visitors across the AOL network of properties.
In addition to establishing the new online radio service, XM will integrate select AOL original programs such as Radio KOL, AOL Music Sessions and AOL Music LIVE! into its satellite radio service. The companies will also work together to develop new programs and services for the online and satellite space.
“The combination of our leadership in online programming and XM’s leadership in satellite programming represents a giant step in digital media,” said Jon Miller, chairman and CEO of America Online, Inc. “This relationship creates important and valuable opportunities across our core businesses enabling us to provide unique value for our large web audience, enhanced programming for our existing and new AOL members, and the ability to introduce new premium services.”
“Our philosophy at XM has always been to work with strong partners at every level: retail, automotive, and now online to build awareness and subscriptions for XM. We are thrilled to be partnering with AOL and combining the creative resources of these two great companies,” said Hugh Panero, XM Satellite Radio president and CEO. “The multi-tiered co-branded radio offerings will feature a number of popular stations currently offered by the AOL Radio Network and XM Satellite Radio.”