AOL, XM Join for Online Radio Service

By Nate Mook | Published April 11, 2005, 12:00 AM

America Online and XM Satellite Radio have forged a partnership to create a new Web-based radio service that will replace both companies' current online offerings. The co-branded service will be free to all Web users, with a premium counterpart that includes more stations for a small monthly fee.

Following its new open portal strategy of exposing its content and services to consumers outside its "walled garden" of subscribers, AOL will make 130 of its radio stations and 20 XM stations available for unlimited listening at no cost.

An enhanced high-bandwidth version of the service will feature 70 XM stations for around $5 USD per month, although specific pricing has not yet been set. XM plans to replace its current Web radio offering, which became free to subscribers last week, with the AOL-powered service when it launches.

AOL members will receive access to the premium service free of charge.

The task of building the radio service will be in the hands of AOL, which is likely to use its Radio@AOL infrastructure based upon Ultravox and the AACPlus streaming audio format.

AOL says it expects to begin rolling out the service with XM this summer, alongside a new AOL.com portal. Although a name has not yet been decided upon, both companies have pledged to heavily promote the service among their respective audiences and jointly develop radio content.

As part of the deal, XM will integrate original AOL programming such as AOL Music Sessions into its satellite radio channels, and AOL will promote XM programs across its Web properties.

Marketing was one of the driving forces behind the XM deal, according to sources, and advertising will play a key role. Commercials will be integrated into AOL stations, although XM channels will remain ad-free.

AOL says that "digital is the future of radio" and the partnership brings together its online radio presence with a rapidly expanding satellite audience.

"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," said America Online CEO Jonathan Miller in the announcement.

AOL currently boasts 10 million online radio listeners each month while XM subscribers number nearly 3.8 million.

Comments

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Well let see, AOL involved. what haven't they screwed up in a partnership? XM internet radio free to subscibers who just had a price increase. Hmmm. So now maybe we will see censored adware internet radio and finally AOL will end up owning XM radio. The price will escalate till no one can afford or want it. Or the content will be so lacking and full of ads no one will use it. You will be spammed every time you log in with spyware of unexplicable proportions. Sounds like one hell of a good idea to me :-)

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The number of complaints on here are overwhelming. Did everyone miss this part?:

It's FREE TO ALL WEB USERS.

Tell me how this can be bad. Don't get me wrong. I hate AOL with a passion, but this deal doesn't look so bad. It will be interesting to see how this service compares to shoutcast.

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People actually use shoutcast of major sites with thousands of shoutcast links relaying to slow servers? I always thought it was a battle between WMP and Winamp as far as audio streaming goes and that content specific sites had their own links.

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As with Winamp, and every other business/endeavor AOL touches, it's going down the tubes.
XM is doing well at this point, once it partnerts up with AOL, it will take on a different tune for the users, goodluck to them! Glad Sirius is staying away from AOL.

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Nothing brings down a company like a partnership with AOL!

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What's funny is that XM and Sirius are already dead in many ways — internet radio by individuals and small groups is MUCH better than their overpriced subscriptions and endless ad clutter. And if I want to listen in the car, I've got an MP3 player, and I control the content, not yet another corporation raising its price every few months. They killed Tivo, now this. Corporations are simply the root of all modern evil. Does any company have a worse reputation for service than AOL right now?

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Satellite radio's main attraction is in the car, not online, so no, XM and Sirius are not already dead.

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XM costs $9.95/month for ad-free listening of every type of music, news, sports, etc. This doesn't seem overpriced to me considering I don't have to change channels as I am driving through places that would normally be poor reception areas (mountains, etc.) Maybe the online part wouldn't be profitable, however, they say it will be free so I don't see what the big deal is. I agree with the previous post that XM is mainly designed for travelling people in their CARS.

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XM raised their price to $12.95, same as sirius,though they have much less content to speak of, they are just doing everything possible to stay ahead[including this].
Sirius has been free to all second tier Dish subscribers for a while now, didn't seem to change things much.
Its the auto-industry that's kept XM ahead till now,//about to change in '06.......

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If 'everything' stated in this article stays true-- and assuming no overly high amount of proprietary/ privacy-busting/high-resource wares need to be installed / running-- then this sounds fairly positive... Until then, doubts will persist due to AOL's checkered history-- take for one what's become of Winamp...

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If AOL is involved it is a bad deal. Why people still use the AOL service today and spend so much money doing it is the joke of the net!

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Actually AOL offers a lot of content, in one software package, for a reasonable fee (for BYOA subscribers anyway).

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AOL is EXPENSIVE. they charge for there serive ontop of most ISP connections.Everything aol touches goes to SH**. they plug it full of adware and spyware, not to mention they try and senor it to make it a "family" compatible. if i wanted all that crap i would go back to FM radio. i pay the for serive to avoid allthat crap.

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