US satellite radio operator XM and internet service America Online are tuning-up to make online music.

The two companies will cross promote their offerings with some XM radio stations featuring programs from AOL's existing music service, including live internet concerts.

The satellite radio company is hoping to grow its current 3.8 million subscribers with help from AOL's marketing muscle and its 22.2m customer base.

Says XM ceo Hugh Panero: "It's a marriage made in heaven between two players that can accomplish a lot more together than they could alone."

For its part, AOL is hoping the new offerings on its revamped home page will help prevent defections and develop services for non-members [WAMN: 11-Oct-04].

Says evp of programming and products Jeff Bankoff: "We think it's going to be a powerful addition to a new portal."

Data sourced from Washington Post Online; additional information by WARC staff