Sirius To Launch Video Service

Sirius Satellite Radio Inc. on Wednesday announced that they have plans to add video 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 develop other video offerings in its latest assault on industry leader XM Satellite Radio. The video service is expected to launch in the second half of 2006.

With  automotive companies indicating strong demand for entertainment products in new cars, Sirius said it anticipates providing two or three channels of content 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.  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.