National, March 14, 2000 -- XM Satellite Radio (NASDAQ:XMSR) and LiveTV, the leading supplier of real-time programming from DIRECTV on commercial aircraft, today announced a ground-breaking agreement to make XM's entire offering of next generation radio programming available to airline passengers across the country beginning in 2001. Terms of the deal were not disclosed.
Under the 10-year agreement, LiveTV will incorporate XM-Ready receivers into its new in-flight entertainment system, sell the XM service directly to commercial airlines, and actively market and promote XM as part of its in-flight entertainment service. LiveTV recently announced a similar agreement with DIRECTV, Inc., the nation's leading provider of satellite television entertainment, to offer airline passengers up to 24 channels of DIRECTV programming via LiveTV's in-flight entertainment system. DIRECTV is also one of XM's investors and strategic partners, which further strengthens this unique marketing alliance.
"Our unique relationship with LiveTV will give millions of airline passengers access to XM's extensive entertainment and information content," said Hugh Panero, XM Satellite Radio's President and CEO. "Once travelers get a taste of XM at 33,000 feet, they'll want to subscribe when they come back to earth." He added: "We are confident that this relationship will enhance XM's advertising base for our ad-supported channels and help grow our subscriber base."
Recently, XM inked an exclusive marketing deal with SFX Entertainment, Inc., the world's leading promoter, producer and presenter of live entertainment events. Through these two relationships, XM stands to reach tens of millions of potential satellite radio adopters where they work and play.
"Our turnkey XM service will provide airline passengers the largest selection of audio entertainment ever delivered to commercial aircraft," said Glenn Latta, LiveTV's Vice President of Operations and Corporate Development. "The XM LiveTV service will provide an economical turnkey in-flight entertainment solution for aircraft of all sizes. By incorporating XM-Ready receivers into LiveTV's new in-flight entertainment system, we can also meet the size and weight requirements for regional aircraft."
This agreement marks the first time this quantity of live radio programming will be offered to airline passengers, including up-to-the-minute news, sports and weather reports, and extensive music and entertainment programming. Furthermore, it represents the first in-flight entertainment system and service offering targeted for the regional airlines, whose smaller aircraft prohibit heavier on-board entertainment technologies. In addition, no complex servers or tape players are required since all programming will be delivered live by XM's satellites.
The XM LiveTV programming package will offer up to 100 channels of uninterrupted, digital-quality music, news, sports, talk and children's programming, including XM's live on-air hosts, concerts and sports events. In addition to dynamic XM Originals channels, XM will offer programming from such premier content providers as NASCAR, USA TODAY, the BBC World Service, Black Entertainment Television, Radio One, the Hispanic Broadcasting Corporation, Bloomberg News Radio, C-SPAN Radio, CNN/Financial Network, CNN/Sports Illustrated, The NewsHour with Jim Lehrer, The Weather Channel, One-On-One Sports and many others.
LiveTV is a joint venture between Sextant In-Flight Systems and Harris Corporation. LiveTVâ„¢ provides turnkey in-flight entertainment services focused on the narrow body and regional commercial aircraft market. Visit LiveTVon the World Wide Web at www.ifetv.com.
Satellite Radio The XM sound will combine leading brand-name channels with distinctive formats produced in XM Radio's fully digital state-of-the-art studios by some of the country's leading artists, producers and radio format designers. XM-Ready radios will be manufactured by such household names as Sony, Alpine, Pioneer Electronics Corporation, Delphi Delco Electronic Systems, Audiovox, Clarion, Mitsubishi Electronic Automotive America, Motorola and the Sharp Corporation. The service will be easy to order, with XM-Ready radios available at car dealerships and consumer electronics stores across the country. The company has a 12-year distribution agreement with General Motors to integrate XM-Ready radios into its vehicles commencing in 2001. American Mobile Satellite Corporation (NASDAQ:SKYC) holds a controlling interest in the company, which is also backed by General Motors, Clear Channel Communications and DIRECTV, respectively, the leading car, radio and satellite TV companies in the US.
DIRECTV is a registered trademark of DIRECTV, Inc., a unit of Hughes Electronics Corporation. Hughes Electronics is the world's leading provider of digital television entertainment, and satellite and wireless systems and services.
First there was AM, then FM and soon ... XM Satellite Radio. For more information, please visit XM's new website: www.xmradio.com.
Factors that could cause forward-looking statements (including projections and business trends) in this document to differ materially from actual results are detailed from time to time in XM Radio's filings with the Securities and Exchange Commission.